Local Indian hot rolled coil (HRC) traded prices have remained unchanged over the past week, with the stability of prices attributed to producers revising their stance and maintaining base prices unchanged at least in the current month, SteelOrbis learned from trade and industry circles on Monday, February 21.
Indian HRC traded prices have maintained at INR 66,800/mt ($894/mt) ex-Mumbai and are also stable at INR 66,750/mt ($893/mt) ex-Chennai, with mills signaling that the expected second base price hike for February has been deferred.
“Producers are seeking to ensure some stability in the market. Strong exports and local sales are ensuring good margins for mills. Stock movement from intermediaries too is also rising. Hence, producers do not want to risk any negative correction from an immediate base price increase,” a Mumbai-based dealer said.
“The current market dynamic may of course change next month when consideration of the end of the fiscal year and assessment of margins are made before the closing of books,” he said.
“Steel demand is almost at pre-Covid levels. The rise in inventories in the third quarter will be taken care of in the fourth quarter. Input costs have risen but the price rise has taken care of that. Overall, steel prices will remain stable for the next few weeks,” Tata Steel CEO T V Narendran said. “Overall, the sentiment is more positive than four weeks ago. Already prices have increased but have not yet fully recovered the falls in November and December,” he said.
$1 = INR 74.70
