Large Indian steel mills have announced new local base prices for February delivery flat steel products. Even though mills said that these levels are up to INR 1,500-2,000/mt ($17-23/mt) higher than the previous trades for January by mills, in fact the new base prices are in line with distributors’ trade prices, and almost in line with the mills’ list prices announced a month ago.
Sources said that, while at least three to four large steel mills have officially effected the base price revisions in their February price list, other large and medium-scale mills are expected to follow with official announcements over the coming week.
Following the announcement, list prices for hot rolled coil (HRC) for February now stand at INR 48,000-49,500/mt ($549-566/mt) ex-works and those for cold rolled coil (CRC) are at INR 53,000-55,000/mt ($606-629/mt) ex-works. As SteelOrbis reported early this week, the tradable prices for Indian coils from warehouses are at INR 48,500/mt ($560/mt) ex-Mumbai and INR 49,000/mt ($562/mt) ex-Chennai in the south.
Expectations in the Indian HRC market have been rather positive as mills are banking on the government to impose the safeguard duty on imports. There is also an expected tightening of supplies during the last quarter of the fiscal year amid talk of at least two large mills planning maintenances. This may result in a shortfall of at least 200,000 mt of crude steel and HRC in allocations.
Nevertheless, sources believe that further rises in the Indian market may be gradual as any sharp surge will be ruled out as bookings across the market have been very low and buyers’ resistance would ensure subdued trading sentiments.