In a delayed move, large integrated Indian mills have hiked flat steel product base prices by a range of INR 750-1,000/mt ($8-11/mt) for all deliveries effective from December 19, .
Following the upward revision, hot rolled coil (HRC) base prices of mills average at around INR 47,100/mt ($524/mt) and base prices of cold rolled coil (CRC) average at around INR 54,200/mt ($603/mt).
According to the sources, several producers claimed that they have been attempting to maintain base price levels for December deliveries considering the sluggish movement of material from mill to market. But the rapid depreciation of the Indian rupee repeatedly hitting new historical lows since early December has increased landed price of imported coking coal, forcing a late decision to hike flat product base prices.
However, some market intermediaries and large distributors have expressed apprehensions that the market may show resistance to higher price levels as demand will remain on the weaker side.
They pointed out that, even during the short period following the announcement of base price increases, mills were still accepting bookings at discounts to base prices of around INR 500/mt ($8/mt), indicating the lack of confidence among market participants.
Another sign that the sustainability of the trend is questionable is that trade prices are still above mills’ base prices.
