Local Indian hot rolled coil (HRC) trade prices have continued to move higher, supported by improved market sentiments following the recent national budget, expectations of base price hikes by mills, and tightening supply in the market, SteelOrbis learned from trade and industry circles on Monday, February 2.
Sources said that HRC trade-level prices have gained INR 500/mt ($5/mt) to INR 50,600/mt ($552/mt) ex-Mumbai and are up INR 600/mt ($7/mt) to INR 53,200/mt ($580/mt) ex-Chennai in the south.
According to the sources, sentiments in the market were boosted by positive expectations for the national budget presented before parliament on February 1, with the market expecting higher government spending to boost demand across user sectors.
It was also pointed out that supplies to the market from mills was tightening following a sharp inventory drawdown, prompting distributors to increase prices, with a few of them also seeking premiums in the range of INR 500-1000/mt ($5-10/mt) for immediate deliveries.
Under the present bullish market conditions, trade circles are anticipating a February base price increase by mills of at least INR 1,000/mt ($10/mt), the sources said.