Local Indian hot rolled coil (HRC) prices have remained stable during the past week at INR 44,500/mt ($689/mt) ex-works amid scarce trading activity, traders said on Monday, February 19.
“Local HRC prices have remained unchanged largely owing to the slight tightening of supplies from steel mills which partially offset the slowdown in demand and stock movements seen at the dealers’ end,” a Mumbai-based trader said.
“Market intermediaries are also being cautious about making fresh bookings, as there is no clear indication of price changes that Indian steel mills might be considering in March, the last month of the current fiscal,” the trader added.
According to two other traders, the market is not sure of the reasons for the tightening of supplies by local steel mills, adding that shutdown of one plant owned by Tata Steel in Odisha may be sole reason for the short supplies of HRC in the market.
There is market speculation that at least some steel mills are building up inventories ahead of another base price hike and to ensure higher gross margins from sales ahead of the closing of their books on March 31, the two traders added.
Sources said that some participants in the market are expecting a modest INR 500/mt ($8/mt) increase in HRC base prices early next month.
$1 = INR 64.59