Prices in the local Indian hot rolled coil (HRC) market have increased by INR 500/mt during the past week to INR 39,500/mt ($614/mt) ex-works, as most large mills completed announcements of hikes in HRC base prices for current month deliveries, traders said on Monday, December 11.
Market sources said that most large domestic steel mills have increased their base prices by about INR 500/mt, while small mills are expected to announce similar increases in course of this week and traders have been quick to pass on the higher prices to end-users.
“Steel mills cited the increase in iron ore and imported coking coal prices as a reason to revise HRC base prices. Market volumes have fallen over the past few days in reaction,” a Mumbai-based trader said.
“I am apprehensive about the inventory pile-up across market participants. Particularly, in view of the latest data which shows Indian finished steel exports falling by 30 percent year on year during the January-November period this year, coupled with the slowdown in stock movement as the appetite of Indian end-users lacks strength,” he added.
Sources said that, though there have been reports of at least two Indian mills concluding HRC export contracts for Southeast Asian markets, this is unlikely to be the trend in the short term after the latest domestic price hikes.
$1 = INR 64.38