Indian local hot rolled coil (HRC) traded prices firmed up over the past week on renewed post-festival holiday restocking, but upward trend was tempered by fall in ex-China offers, SteelOrbis learned from trade and industry circles on Monday, November 15.
Traded HRC prices gained around INR 500/mt ($7/mt) to levels of INR 73,100-73,500/mt ($982-988/mt) ex-Mumbai. But sources said that the uptrend from restocking and sentiments were reined in by sharp fall in ex-China offers.
According to trade circles, though imports continued to remain limited to nominal volumes, reports in the market suggested ex-China offers down at levels of $810-830/mt FOB compared to $860/mt FOB and higher a week ago.
It was pointed out that local HRC still enjoyed a price advantage over landed price of imports, the spreads had narrowed with fall in Chinese prices and while trade volumes were not at risk, softer ex-China prices held possibilities of local producers being held back from further base price increase, at least in the short term.
At the same time, industry sources said that Tata Steel had planned maintenance shutdown of melting shops for 10-15 days at its mills in Jamshedpur and Kalinganagar in end November -early December and the market estimated supplies to tighten by around 400,000 mt which would provide support to local HRC prices consolidate at current higher levels.
“Our short term assessment is that prices will remain volatile. It will touch highs followed by correction, triggered by soft global cues. But over a quarter, prices will remain strong with upside bias driven by rapid recovery in manufacturing and cost inflationary pressures,” a steel sector analyst with a Mumbai based financial advisory firm said.
$1= INR 74.40
