Prices in the local Indian hot rolled coil (HRC) market have continued to increase for the third consecutive week, rising by INR 1,000/mt ($15/mt) week on week to INR 45,000/mt ($660/mt) ex-works, in anticipation of domestic steel mills starting to hike base prices from this week, traders said on Monday, January 9.
“The rise in HRC prices has continued due to strong restocking by dealers who also reflected the higher procurement prices from mills in their own prices,” a Mumbai-based trader said.
“However, there is no certainty among dealers over the size of the base price revision that might be effected by steel mills this month,” the trader added.
The trader went on to say that market participants are mostly talking of a price revision as high as INR 6,000/mt ($88/mt), though some others maintain that the price hike will be more conservative at around INR 3,000/mt ($44/mt).
At least two other traders said that price hike by mills will be muted as the impact of the scrapping of high-value currency notes in November is still being felt and as industrial production across sectors is facing a liquidity crunch in view of such a demonetization in the economy.
$1 = INR 68.20