Local Indian hot rolled coil (HRC) market have continued to increase for the second consecutive week, rising by INR 500/mt week on week to INR 39,000/mt ($598/mt) ex-works, while large steel mills have been focusing on the domestic market to compensate for the dip in export opportunities, traders said on Monday, November 13.
“Despite the rise in October finished steel export shipments, the market feels that HRC exports will not be able to maintain their momentum. Hence, large steel mills are increasingly focusing on the domestic market,” a Mumbai-based trader said.
“At the same, dealers who have refrained from making fresh bookings over the past few days, are seen to be restocking. But I feel that the upward movement of HRC domestic prices is unlikely to be sustained as demand from end-users remains sluggish and this is reflected in the dip in the India's manufacturing index for October,” the trader added.
According to market sources, most dealers have withdrawn discounts and there are reports in the market that large steel mills which have maintained their HRC prices unchanged for current month deliveries will go in for a hike in base prices in December, and this has provided support for the latest increases in market prices.
$1 = INR 65.43