In the past week, the Indian domestic hot rolled coil (HRC) market has maintained its seasonal lull in activity. In addition to the weak demand which has been observed for months, the monsoon season is now slowing down transactions in the market. However, steel mills' HRC offers, which were at INR 34,500-35,000/mt ($771-782/mt) ex-works in previous weeks, have increased by INR 500/mt ($11/mt) to INR 35,500/mt ($794/mt) ex-works.
While Essar Steel and JSW Steel have raised their prices, the state-owned steel producer Steel Authority of India (SAIL) has not yet pushed up its HRC price. Market players are looking forward to seeing the effects of these price increases amid already weak demand. While some claim that these price hikes only exist on paper, some others suggest that these increases were needed in order to maintain prices in the range of INR 34,500-35,000/mt. However, a market insider has told SteelOrbis that the new price levels are not even mentioned in the transaction phase and that Indian producers may offer significant discounts during negotiations.
Facing difficulties in receiving orders in their domestic market, Indian steelmakers are seeking to conclude sales to the European market, as they did back in April. SteelOrbis has learned from market sources that Indian mills are currently offering HRC to the export markets at $720-730/mt FOB, while their offers for 20-40 mm hot rolled plate (HRP) stand at $790/mt FOB. However, buyers' interest in these offers has been weak so far.