Local Indian hot rolled coil (HRC) trade prices have showed a strong upward trajectory amid lower imports, anticipation of supply tightening due to unconfirmed reports of some mills going in for maintenance shutdowns, and sustained expectations of a safeguard duty on imports, SteelOrbis learned from trade and industry circles on Monday, February 3.
Sources said that HRC trade prices are up INR 1,000-1,500/mt ($11.5-17/mt) to INR 48,500/mt ($560/mt) ex-Mumbai and to INR 49,000/mt ($562/mt) ex-Chennai in the south.
According to the sources citing the market grapevine, at least two large mills are planning maintenance shutdowns for 20-30 days, triggering anticipation of a supply tightening and offering support to prices.
They said that market participants have reacted positively to the national budget for 2025-26 placed before parliament on February 1, describing it as “growth oriented”, contributing toward improving manufacturing output and thereby boosting demand for steel products.
“The mood among producers and market intermediaries is getting better. The hardening of trade prices will support mills to implement planned base price hikes for February. Imposition of safeguard duty on import continues to be in the headlines and mills are optimistic that the government will accede to the demand and provide additional headroom for base price increase,” a Mumbai-based distributor told SteelOrbis.
“However, we are still cautious because most of the factors driving prices are from the supply side. It can be sustained only by matching improvements on the demand side. On this, we are still doubtful,” he added.
$1 = INR 86.60