Indian domestic prices for hot rolled coil (HRC) have risen by around INR 1,000/mt ($16/mt) in the past week to the range of INR 39,500-40,000/mt ($637-645/mt) ex-works, with Indian steel mills hiking their price effective as of January, traders said on Thursday, January 2.
According to Kolkata-based traders, Jindal Steel and Power Limited (JSPL) and JSW Limited have revised their base prices upward by INR 1,000/mt ($16/mt), while other mills like Steel Authority of India Limited (SAIL), Tata Steel and Essar Steel are expected to increase their base prices by a range of INR 500-1,000/mt ($8-16/mt) soon.
The last upward revision of steel prices by large mills was effected in September last year, when they increased HRC prices by around INR 2,000/mt ($32/mt), the traders said.
Market sources state that booking activity during the past week has been very weak and traders are not sure whether this has been due to to year-end considerations or resistance to higher prices.
The sources said that traders are watching for the market reaction once all producers have completed their price revisions and that higher prices will face resistance with a further dampening of volumes given persistent weak manufacturing growth.