Local Indian hot rolled coil (HRC) prices have moved up by INR 500/mt ($7.5/mt) over the past week to INR 35,500/mt ($533/mt) as local steel mills announced higher base prices for the month, traders said on Monday, May 9.
Market sources said that most large domestic steel mills have increased prices of HRC and other flat products by INR 1,000/mt ($15/mt) and most dealers have partially passed on the hikes to end-users.
"With virtual zero imports, local steel mills have been comfortably placed to increase local prices. In fact, the market expects large mills to go in for another price hike later this month as the margin of the latest increase was less than market expectations," a Mumbai-based trader said.
Sources said that most dealers are reporting higher inventories and so are cautious about passing on the entire price hike made by local steelmakers to end-users and most are absorbing part of the increase to keep transaction volumes high, even at the cost of their own margins.
$1 = INR 66.55