After recording gains in the previous three weeks, prices in the local Indian hot rolled coil (HRC) market have taken a pause during the past week, remaining stable week on week at INR 42,500/mt ($600/mt) ex-works, as the market awaits pricing signals for the current month from domestic steel mills, while at the same time it is supported by the steady fall in import shipments, traders said on Monday, March 4.
“The market is clearly taking a pause in making fresh bookings at higher levels. However, local HRC prices have remained stable with the support of the steady fall in imports,” a Mumbai-based trader said.
“At the same time, having increased base price three times during February, the market is waiting for fresh pricing signals for current month deliveries. Of course, all signals are pointing toward another round of base price hikes as Indian steel mills will try to maximize their margins as the fiscal year will draw to a close on March 31,” he added.
Market sources said that tentative indications available from domestic steel mills point towards a base price increase in the range of INR 500-1,000/mt, for March deliveries.
It is still not clear whether four base price increases over the past two months would trigger resistance from buyers, but, on the positive side, if the steady fall in inward shipments of imported HRC is sustained, any correction in prices will be limited, the sources added.
$1 = INR 70.89