Prices in the local Indian hot rolled coil (HRC) prices market have increased by INR 500/mt during the past week to INR 43,500/mt ($681/mt) ex-works, with local steel mills commencing hikes in base prices for the second time this month and also given the resumption of export negotiations, traders said on Monday, January 22.
“ After remaining stable for a week, local HRC prices are back on a rising trend with some of the large mills starting to announce higher base prices, in their second revision in January,” a Mumbai-based trader said.
“Some of the domestic mills are reported to have commence negotiations for export shipments with buyers in Vietnam and Indonesia, which has provided fresh impetus for local HRC prices” the trader added.
Market sources said that Steel Authority of India Limited announced a base price hike of INR 500/mt during the past week, and other mills are expected to announce a similar increase in course of this week.
The sources said that the bullish sentiment in the market has also been bolstered by expectations of a demand push from higher government expenditure for the fiscal year 2018-19 in proposals in the national budget to be placed before India's parliament on February 1.
$1 = INR 63.76