Local Indian hot rolled coil (HRC) prices have followed an upward trend during the past week, increasing by INR 400/mt week on week to INR 41,200/mt ($593/mt) ex-works, in reaction to domestic steel mills hiking base prices, traders said on Monday, June 10.
Market sources said that some of the large domestic steel mills have started revising base prices for the current month, increasing them by a range of INR 400-800/mt.
However, the sources said that, while the mills adjusted prices in wake of rising input costs like iron ore, given the sharp slowdown of stock movements across market segments, these mills are also reported to be selectively offering discounts in order to avoid a sharp rise in inventories.
“It is after a long time interval that local steel mills are again being forced to offer discounts after hiking prices, which is a clear indication of a market slowdown,” a Mumbai-based trader said.
“While currently the steel mills are offering volume-based discounts selectively, I would feel that discounting will become more widespread as there are no signs that key demand drivers will improve in the short term,” the trader added.
$1 = INR 69.50