Prices in the local Indian hot rolled coil (HRC) market have continued their upward trend, rising by INR 1,500/mt during the past week to INR 41,000/mt ($637/mt) ex-works, as more medium-sized mills have completed announcing base price hikes for the current month and as strong buying activity has supported higher price levels, traders said on Monday, December 18.
“Medium-sized mills have followed their larger counterparts in announcing higher base prices during the past week. At the same time, fresh bookings by dealers and end-users have enabled HRC prices to consolidate above INR 40.000/mt ($621/mt) ex-works,” a Mumbai-based trader said.
“No significant import transactions have been reported during the week despite rising local prices and this has also helped local HRC prices to consolidate without having to face any pressures of resistance from buyers,” the trader added.
At least two other traders said that the rush to make new bookings was also triggered by market speculation that local steel mills could opt for another round of hikes in base prices before the start of 2018. They said that, with rising input prices, local steel mills are likely to make a series of price revisions to protect their bottom line with just another three months remaining in the current fiscal year.
$1 = INR 64.02