Prices in the local Indian hot rolled coil (HRC) market have increased by INR 500/mt during the past week to INR 43,000/mt ($679/mt) ex-works, as domestic steel mills have commenced base revisions and amid strong buying across market segments, traders said on Monday, January 8.
“As expected large Indian steel mills have started announcing higher base prices for January deliveries, citing the increases in input costs. Medium-sized mills are also expected to follow suit over the next few days,” a Mumbai-based trader said.
“The strong buying support from both dealers and end-users have discounted any possibility of a reaction to the base price revisions and local Indian HRC prices are seen to be consolidating at higher levels,” the trader added.
Two other traders said that several large steel mills including JSW Limited have reportedly said that the latest round of price revisions did not fully compensate for the rise in input costs and steel mills will likely consider another price hike later this month, as they do not have any option but to pass on higher prices of domestic iron ore to consumers.
Sources said that, having increased HRC base prices by INR 500/mt early this month, local steel mills may announce a stiffer price increase of over INR 1,000/mt towards the close of the current month, triggering fresh bookings by dealers.
$1= INR 63.43