Local Indian hot rolled coil (HRC) trade prices have increased slightly though sentiments are mixed amid low activity in trade channels, while some localized shortages have been prompting some distributors to quote higher prices, SteelOrbis learned from trade and industry circles on Monday, August 14.
Sources said that trade HRC prices have moved up by INR 300/mt ($4/mt) to INR 56,400/mt ($681/mt) ex-Mumbai and have gained INR 600/mt ($8/mt) to INR 55,600/mt ($671/mt) ex-Chennai in the south. Furthermore, they said that some traders, particularly in the south, were also heard to be quoting higher at INR 57,000/mt ($688/mt) for certain grades reported to be in short supply at distributors.
According to the sources, HRC trade prices have been on an uptrend for the past several weeks largely on the back of base price increases by mills and the supply side tightening due to maintenance shutdowns implemented by some plants. Meanwhile, the demand side has continued to remain weak and “price reality” is expected to emerge later this month or early in September when some of the mills currently shutdown resume operation and new volumes come into the market.
“The market is delicately poised and can go either direction. There are risks of corrections after prices recording gains for several weeks. On the other hand, there is upside potential with the busy season starting next month. Trade is being cautious, uncertain which factor would prevail,” a Mumbai-based distributor said.
“The market expects producers to go in for another base price increase at the end of August or in early September to offset the slight rise in input costs, barring coking coal,” he said.
At the same time, according to some sources, price will fluctuate in a limited range until the Diwali festivals in November, and “nobody is seriously bullish until that time”.
$1 = INR 82.80
