Local Indian hot rolled coil (HRC) prices have surged breaking a prolonged downtrend riding of robust restocking reported by large industrials indicating the market absorbing the recent base price hikes by mills and talks of the government considering fresh long-term barriers to imports.
Sources said that trade level HRC price gained a robust INR 1,800/mt ($20/mt) at INR 47,500/mt ($529/mt) ex-Mumbai and up INR 2,100/mt ($23/mt) at INR 49,900/mt ($556/mt) ex-Chennai in the south.
According to the sources, large industrials have been aggressive in fresh bookings anticipating that prices had touched a bottom of a five-year low and is now on a new recovery curve which helped the market absorb the recent base price increases. The market has been rife with chatter over recent indications from the government that it was considering new long-term tariff and non-tariff barriers to imports offering additional support to the market.
“Fresh restocking in good volumes was seen after a very long time and boosted both fundamental price dynamics as well as sentiments that the market may be moving up from a bottom. It is difficult to forecast the sustainability of the upward curve, but we hope the positivity will hold,” a Mumbai based distributor told SteelOrbis.
“In the short term, the recent gains will enable market participants—distributors and producers to liquidate stocks rapidly. Hence the supply side will offer support. The New Year can bring some cheer in the market,” he added.
$1= INR 89.81
