Prices in the local Indian hot rolled coil (HRC) market have remained stable for the third consecutive week at INR 39,000/mt ($606/mt) ex-works, with little change in the low trading activity in the market and with even expectations of a price hike by local steel mills failing to trigger any fresh buying, traders said on Monday, December 4.
Market sources said that most large local steel mills are considering increasing their HRC prices by around INR 1,000/mt ($16/mt) for December deliveries, citing increases in prices of domestic iron ore and imported coking coal. The sources said that formal announcements of base price revisions will start to be heard later this week.
“Even the imminent increase in prices by steel mills have failed to spark any rush to make bookings at current prices, indicating that inventories at dealers are on the high side and that they are not willing to conclude transactions right now,” a Mumbai-based trader said.
“I feel the new round of price revisions will further contribute to low volumes in the market. But with little import competition, steel mills have all the pricing power,” the trader added.
$1 = INR 64.40