During the past week, prices in the local Indian hot rolled coil (HRC) market have remained stable at INR 43,000/mt ($678/mt) ex-works, amid the cautious mood in the market and uncertainty over possible further price revisions by domestic steel mills, traders said on Monday, January 15.
Market sources said that there are differing views among market participants on whether Indian steel mills will go in for a second round of price revisions in the current month. Several large mills like JSW Limited had said that the steady increase in domestic iron ore prices would be passed on to consumers without delay.
A section of traders said that local mills are likely to increase HRC base prices by around INR 1.000/mt in the coming week but there was no unanimity on this in the market.
“Fresh bookings by traders have remained steady but the mood is cautious as regards whether the market can absorb another hike in base prices,” a Mumbai-based trader said.
“I feel the market will remain stable and a new direction is expected after the national budget is placed before parliament on February 1, which will give an indication as regards government spending and its impact on aggregate industrial demand,” the trader added.
$1 = INR 63.44