Local Indian hot rolled coil (HRC) prices have continued to consolidate at higher levels over the past week in anticipation of base price hikes by mills and optimism for the prospects of higher government spending in the coming national budget, even though overall trade volumes have remained on the lower side owing to extended the weekend holidays, SteelOrbis learned from industry and trade circles on Monday, January 26.
Sources said that HRC trade-level prices are up INR 500/mt ($5/mt) to INR 50,000/mt ex-Mumbai and have gained INR 1,000/mt ($12/mt) to INR 52,600/mt ($575/mt) ex-Chennai in the south owing to localized disruptions of deliveries, resulting from transportation issues from mills to stockyards.
According to the sources, even though industrial demand remains on the softer side, the market is optimistic of positive drivers from the national budget 2026-27 to be placed before parliament next week. Market participants expect that higher budgetary outlays on capital expenditure will offer a fresh push to market dynamics on the demand side.
“Steel prices, particularly in the flat products category, have recovered from a five-year low. But much of this recovery has been from new barriers to imports and price hikes by mills and demand-side drivers remain nominal. A section of buyers remains cautious on restocking and is showing resistance. Only a revival of demand will enable the market to sustain the recent gains, and this is where the forthcoming budget can contribute,” a Mumbai-based distributor told SteelOrbis.
“Producers are gaining some pricing power as reflected in frequent base price increases. More such hikes are expected in February. However, the short-term trend will show volatility in the absence of a demand push,” he added.
$1 = INR 91.63
