Local Indian hot rolled coil (HRC) prices have remained stable during the past week at INR 38,200/mt ($502/mt) ex-works as domestic steel mills have delayed announcing revised base prices for the current month and market participants await details of fresh restrictions after the ongoing national lockdown ends tomorrow, SteelOrbis has learned on Monday, April 13.
According to sources, while the national lockdown is largely expected to be extended until April 30, both state governments and the central government have indicated they will permit some graded resumption of business and industrial activity subject to conditions.
The resumption of curtailed business and industrial activity would be limited to areas designated as ‘green zones’ in terms of incidence of Covid-19 cases and most large steel mills have deferred announcing their April delivery pricing strategy until they get a clear understanding of locations where industrial activity would be permitted and if their areas of operations fall within such green zones.
Market sources said that commercial traders have not reported any significant trading activity during the past week, while large domestic steel mills have pushed some volumes from their stockyards at discounts of around INR500/mt ($6.5/mt), with a number of traders anticipating that this discount will be factored in and formalized through lower base prices later this month, prompting even small bookings to be deferred.
“We will take a decision on HRC base prices closer to around April 20, once details of new restrictions and relaxations get cleared from state and central government. A lot will depend on the impact of the new lockdown decisions on our operational hinterland. But I can reasonably expect that most steel mills will maintain base prices, at least for the last two weeks of the current month,” a manager at one large steel mill said.
$1 = INR 76.17
