Reversing a four-week downtrend, prices in the local Indian hot rolled coil (HRC) have increased by INR 500/mt during the past week to INR 41,000/mt ($576/mt) ex-works in reaction to domestic steel mills completing the upward revisions of their base prices, traders said on Monday, February 11.
Market sources said that most large mills have completed announcing base price revisions for current month deliveries, increasing them by INR 500-800/mt ($7-11/mt).
“The increase in base prices, though expected, still negatively impacted market conditions in view of the high stocks across market segments and the slowdown in fresh bookings by end-users,” a Mumbai-based trader said.
“The slowdown in export shipments, estimated at around 20 percent in January, also ensured an excess of material available in the market, which did not warrant a base price hike. However, steel mills have obviously attempted to push up prices to increase margins and revenues with the end of the current fiscal year drawing closer. Nevertheless, there are doubts about whether such a strategy will achieve much, given the overall fall in volumes in the market,” the trader added.
$1 = INR 71.16