Local Indian hot rolled coil (HRC) prices have remained stable during the past week at INR 34,500/mt ($522/mt) ex-works even though market activity has slumped significantly with the near absence of buying, traders said on Monday, April 4.
"The impact of high prices, high inventories at dealers and the slowdown in stock movements are deepening in the market," a Mumbai-based trader said.
"There is a lot of talk of another HRC price hike by local steel mills. Expectations are of a minimum upward revision of INR 500/mt ($7.50/mt) in base prices," the trader said.
"A downward correction in dealers' prices is unlikely as the latter are not in a position to offer discounts to keep pushing volumes, but sustained price hikes by steel mills would only lead to the market activity dipping further," he added.
Sources said that government-owned Steel Authority of India Limited (SAIL) is expected to announce a price hike later this week and the hike is expected to be INR 500/mt, but other steel mills in the private sector may go in for a stiffer price hike of even INR 1,000/mt ($15/mt).
$1 = INR 66.09