Prices in the local Indian HRC market have reversed their falling trend, increasing by INR 300/mt week on week to INR 46,000/mt ($687/mt) ex-works, amid a slight revival of restocking by dealers triggered by reports of imminent base price hikes by domestic steel mills for June deliveries, traders said on Monday, June 4.
Market sources said that Indian steel mills are expected to increase base prices by about INR 500/mt across flat steel products for current month deliveries.
“There has been a rise in market activity ahead of base price revisions by local steel mills. Tata Steel is reported to have already effected higher flat product prices and other large steel producers will be announcing revised prices over course of this week,” a Mumbai-based trader said.
“But I see a limited upside for prices from current levels and the possibility of rising inventories both at mills and dealers as there are reports of Indian HRC export shipments weakening over the past few weeks,” the trader added.
Market sources said that large steel mills have reduced ex-India HRC offers by $20/mt on FOB basis during the past week but no significant transactions have been concluded by any of these steel mills.
$1 = 67.08 INR