Prices in the local Indian hot rolled coil (HRC) have remained unchanged during the past week at INR 38,500/mt ($597/mt) ex-works even though domestic steel mills have hiked their base prices by INR 1,000/mt; dealers have maintained their prices unchanged and have not passed on producers’ base price revisions to buyers, traders said on Monday, July 10.
“Most of the large steel mills have increased their HRC base prices to adjust to the new Goods and Service Tax,” a Mumbai-based trader said.
“However, dealers are mostly maintaining their prices unchanged for two reasons. Either because they are not fully ready with the software necessary to operate under the new indirect tax laws, or because accumulated inventory and the slow movement of stocks are temporarily absorbing the higher base price,” the trader added.
Two other traders said that Indian steel mills have increased their base prices also because of the upturn in HRC exports, with offers ranging at around $500-520/mt FOB and with transaction volumes to Southeast Asian markets indicating a sharp rise during the past week even as domestic demand has remained sluggish.
$1 = INR 64.50