After a brief pause, local Indian hot rolled coil (HRC) trade prices have resumed their uptrend, supported by trade channels quoting higher prices and integrated mills seeking extended delivery timelines for new bookings, indicating a tightening of supplies, SteelOrbis learned from trade and industry circles on Monday, September 4.
Sources said that HRC trade prices are up INR 400/mt ($5/mt) to INR 56,800/mt ($688/mt) ex-Mumbai and have gained INR 800/mt ($10/mt) to INR 56,400/mt ($683/mt) ex-Chennai in the south.
According to the sources, there is near unanimity among market participants that integrated mills will leverage the supply-side tightening to increase September base prices, possibly by INR 1,000-1,500/mt ($12-18/mt).
“There has been an overall improvement in trade activity over the past week and the pause in import bookings has enabled prices to return on an uptrend. Distributors and end-users are facing longer delivery timelines, prompting traders with stocks to quote higher prices,” a Mumbai-based distributor said.
“Local prices will continue to seek higher levels but the pace of the rise will be checked by imports. Although no significant import bookings were reported over the past week, competitive ex-China prices will continue to offer challenges to the local market. Also, some mills under maintenance shutdowns will be coming back into production over the next two weeks, ensuring more supplies to the market,” he said.
An official at Steel Authority of India Limited (SAIL) said, “While the second quarter, July-September, will be a good one in terms of prices and margins, the full benefits of higher prices and blended coking coal being cheaper by around INR 2,000/mt ($24/mt) will accrue to producers in the third quarter of October-December and domestic demand will gain more strength.
$1 = INR 82.60