Prices in the local Indian hot rolled coil (HRC) market have increased for the second consecutive week, up INR 300/mt to INR 46,300/mt ($687/mt) ex-works, but transaction volumes in the market dipped slightly as dealers slowed down restocking while most domestic steel mills completed base price revisions for current month deliveries, traders said on Monday, June 11.
“Most Indian steel mills have announced higher HRC base prices over the past one week. But dealers are cautious about booking large volumes at higher prices,” a Mumbai-based trader said.
“However, I feel that upside gains from current levels will be limited because May exports of HRC from India have reportedly fallen according to industry estimates and higher domestic availability will temper prices,” the trader added.
According to market sources, exports shipments were down last month, not so much from falling interest from overseas buyers, but because Indian steel mills after increasing base prices for the past three consecutive months have gained higher margins from domestic sales and have so they pushed volumes into the local market.
“While volumes have been dipping due to the hike in prices, it remains to be seen if there will be stronger resistance from buyers, which would trigger a fall in market prices,” a second Mumbai-based trader said.
$1 = INR 67.42