After increases in the previous two weeks, in the past week the local Indian hot rolled coil (HRC) market has taken a pause with prices remaining at INR 36,500/mt ($570/mt) ex-works, with some market players apprehensive about the medium-term outlook, traders said on Monday, August 14.
“With most domestic steel mills completing their base price revisions for the current month, HRC market prices are seen to be stable. But the future trend is very uncertain,” a Mumbai-based trader said.
“Most steel mills are pushing up their HRC prices based on import parity pricing as international finished steel prices are firming up. However, this does not take into account the poor manufacturing growth figures which will in return reflect on steel demand,” the trader said.
The trader pointed out that the latest government data on the index of industrial production shows a steady contraction of factory output, adding that this would impact demand and so recent gains in HRC prices are not expected to be sustained.
Significantly, at least two leading Mumbai-based traders said that there are strong reports in the market that local steel mills emboldened by steadily rising international finished steel prices and low import competition will opt for a second hike in flat product base prices later this month.
$1 = INR 64.08
