Local Indian hot rolled coil (HRC) prices have remained stable during the past week at INR 41,000/mt ($604/mt) ex-works, with market activity falling due to year-end considerations and uncertainty regarding the short-term trends emerging next year, traders said on Monday, December 19.
“After significant declines in the previous week, market participants appear to be taking a pause. Activity has slackened too as traders have preferred not to conclude fresh deals due to year-end considerations and are waiting for a clearer idea of the price trends emerging in the New Year,” a Mumbai-based trader said.
“There is a lot of talk in the market of local steel mills likely to effect one of the highest price hikes in recent years, sometime early next year. But even such reports have not triggered any rush to stock up ahead of the price increase, indicating a negative demand outlook,” the trader added.
A number of market sources said that they have received indications that local steel mills are likely to announce a large base price hike which is expected to be as high as INR 6,000/mt ($88/mt) for flat products. The sources said this would be the highest increase seen in flat product prices in the last several years.
$1= INR 67.86