Local Indian hot rolled coil (HRC) prices has rebounded during the past week, gaining INR 500/mt to INR 45,500/mt ($686/mt) ex-works on fresh bookings in anticipation of a price hike by domestic steel mills next month and rising export shipments, traders said on Monday, April 23.
“Local HRC prices are being driven by pricing power enjoyed by domestic steel mills in wake of higher export opportunities in South East Asian markets and tightening of supplies in local market,” a Mumbai-based trader said.
“Against this backdrop, the market expects steel mills to hike their base prices next month triggering acceleration in bookings by dealers,” the trader added.
Two other traders citing reports prepared by equities research firm said that Indian domestic steel demand in the current fiscal is forecast to growth 5.6 percent and further to six percent in 2019-2020, and such demand projection would support the sustained hike by steel mills in the medium term.
According to the traders, steel mills are reportedly aggressively looking to increase HRC shipments to markets in Nepal, Malaysia and Gulf and if they successfully conclude transactions it may further tighten supplies in the domestic market and price consolidation at higher levels.
$1 = INR 66.29