Local Indian hot rolled coil (HRC) prices have continued to seek higher levels over the past week amid improved restocking by industrial users expecting base price hikes by mills and lower import competition, SteelOrbis learned from trade and industry circles on Monday, March 16.
Sources said that trade-level HRC prices are up INR 400/mt ($4/mt) to INR 53,000/mt ($572/mt) ex-Mumbai and have gained INR 700/mt ($8/mt) to INR 56,200/mt ($607/mt) ex-Chennai in the south.
According to the sources, bookings by large industrial consumers have been reported on the higher side in anticipation of base price hikes expected from mills.
At the same time, the market expects a further base price increase of around INR 1,000/mt ($11/mt), with producers citing rising input costs, particularly energy and imported coking coal, amid higher freight costs owing to the war in the Middle East.
“Supplies are expected to tighten on lower imports. Import bookings are declining owing to freight uncertainties and costs resulting from the war in the Middle East. This will help the market absorb any base price increases by local producers,” a Mumbai-based distributor told SteelOrbis.
$1 = INR 92.31
