Indian hot rolled coil (HRC) trade prices have remained stable during the past week with market participants taking a pause, awaiting the direction of base price changes by producers for the current month, SteelOrbis learned from trade and industry circles on Monday, April 11.
The sharp uptrend in trade prices has eased because base price increases by mills which seemed imminent until recently are not a foregone conclusion any more in view of lower bids received for exports and strong resistance from buyers in the local market.
While a section of the market said that mills could be expected to increase base prices but the size of the increase would be on the moderate side and trade circles have been easing off restocking, awaiting definite pricing signals.
The sources said that local trade HRC prices have remained unchanged over the past week at INR 76,900/mt ($1,013/mt) ex-Mumbai and are stable at INR 77,400/mt ($1,020/mt) ex-Chennai in the south.
“Very high prices are having an impact on trade volumes and activity. But a negative price correction can be ruled out as cost inflation is very strong and the high price regime is here to stay,” a Mumbai-based distributor said.
“Lower trade volume and end-use bookings can at best keep the next base price hike by mills lower than the expected INR 2,000/mt ($26/mt), at least in the first base price revision in April,” he said.
According to an official at a private mill, EU buying has eased off and bids received in the export market have been softening and, with sellers not less aggressive in pushing volumes overseas, there could be supply-side pressures on local prices.
$1 = INR 75.90
