Local Indian hot rolled coil (HRC) prices have continued their uptrend for the third consecutive week, increasing by INR 500/mt week on week to INR 42,500/mt ($598/mt) ex-works amid a further fall in imports and domestic steel mills going in for an early revision of base prices, traders said on Monday, February 25.
“A few of the large steel mills have increased their base prices during the past week, announcing a INR 500/mt hike across all flat products. These base price revisions at the end of the month instead of waiting until March have caught the market by surprise,” a Mumbai-based trader said.
“While just a few steel mills have officially announced higher base prices, other mills are expected to follow suit over this week instead of waiting for March. While the steel mills cited rising input costs as the reason for higher base prices, I think that the producers are trying to push up prices to improve margins at the end of the current fiscal year,” the trader added.
Market sources said that the consolidation of HRC prices at higher levels has also been supported by the further fall in import competition, with ex-China offers strengthening for the second consecutive week, triggering caution among importing traders.
$1 = INR 71.04