Local Indian hot rolled coil (HRC) trade prices have showed high volatility, suffering mid-week losses, but recovering partially on the back of improved overseas sales and unconfirmed reports of base price hikes by mills soon, SteelOrbis learned from trade and industry circles on Monday, December 19.
Indian HRC prices fell to a low of INR 53,000/mt ($640/mt) ex-Mumbai in early week trades but recovered to INR 53,400/mt ($645/mt) ex-Mumbai, but this is still lower than INR 54,100/mt ($653/mt) ex-Mumbai traded a week ago.
Ex-Chennai prices are down INR 800/mt ($10/mt) to INR 53,000/mt, sources said.
According to the sources, early week losses resulted in trade channels virtually halting new bookings, reacting to negative sentiments over manufacturing sector growth and the fall in industrial output. But reports of strong overseas sales achieved by mills and lot of speculation over imminent base price increases by producers enabled prices to recover some lost ground but they remained lower on week-on-week basis.
“The market is critically poised and can go in either direction in the short term. Macro-economic and industrial indicators are all very negative. It is finding some support from the rebound in exports and domestic demand still remains in the positive zone. But sentiments are weakening and the outlook for the last quarter is negative,” a Mumbai-based distributor said.
“However, in the midst of this, we are hearing a lot about producers increasing January base prices. This will depress market conditions as aggregate industrial demand will remain sluggish,” he said.
Several in trade circles speculated that domestic mills could increase base prices by at least INR 1,000/mt ($12/mt), but no official comments have been forthcoming from mills.
$1 = INR 82.80
