Local Indian hot rolled coil (HRC) prices have remained stable during the past week at INR 45,500/mt ($674/mt) ex-works amid a steady rise in trading volumes and market expectations of a base price hike by domestic steel mills next month, traders said on Monday, April 30.
Market sources said that Indian steel mills may hike their HRC base prices by at least INR 500/mt, leveraging the supply-side tightness in the market.
“There is an overall optimism in the market as regards demand, both among market intermediaries and end-users, resulting in a steady increase in trading volumes and higher prices being absorbed by the market,” a Mumbai-based trader said.
“Domestic steel mills are also being aggressive in pushing HRC volumes into Southeast Asian market and hence there has been a tightening of supply in the local market,” the trader added.
Sources said that, riding on the increase in ex-China HRC offers, Indian mills have also increased their export offers by $10-15/mt to levels of around $620-630/mt FOB. The higher offers along with the Indian currency weakening further against the dollar is ensuring healthy export margins, prompting the aggressive overseas push of volumes by Indian steel mills.
$1 = INR 67.48