Local Indian hot rolled coil (HRC) traded prices have inched up over the past week although the rate of increase has eased off, but market participants are not expecting any negative correction as mills are reported to be considering another base price increase in February, SteelOrbis has learned from trade and industry circles.
The traded HRC price is up by a marginal INR 200/mt ($3/mt) to INR 66,800/mt ($886/mt) ex-Mumbai, while it has remained at INR 66,750/mt ($885/mt) ex-Chennai in the south.
“The market is taking a pause but there is no concern of any downside risks from current level as mills are seeing a rapid drawdown in stocks and industry reports suggest that mills have received HRC export bookings for deliveries in February-March totaling an estimated 1.1 million mt and producers are looking at a base price hike of at least INR 1,000/mt ($13/mt) in the current month,” a Mumbai-based distributor said.
“The slight slowdown seen in the past few days is largely because end users are restocking on a need-based basis. Going forward, trade and price will improve based on strong domestic and overseas demand and tight supplies from mills,” he said.
At least two traders have reported that integrated mills have completely pulled out any kind of volume-based discounts and immediate delivery supply deals are being turned down and lead times extended to at least 15 days.
$1 = INR 75.40
