Local Indian hot rolled coil (HRC) trade prices have consolidated at higher levels over the past week amid combined impacts of base price hikes by mills, tighter supplies and improved sentiments following the easing of regional geopolitical tensions after the ceasefire agreement between India and Pakistan, SteelOrbis learned from trade and industry circles on Monday, May 12.
Sources said that trade levels of HRC prices are up INR 200/mt ($2/mt) to INR 53,000/mt ($623/mt) ex-Mumbai and have also gained a similar INR 200/mt ($2/mt) to INR 54,000/mt ($635/mt) ex-Chennai in the south.
A section in trade circles claimed that a few bookings for immediate deliveries were heard at higher levels of around INR 55,000/mt ($647/mt) ex-warehouse in view of supplies tightening particularly in the western and eastern regional markets.
Tata Steel Limited’s Jamshedpur mill is expected to join JSW Steel Limited’s Dolvi mill in maintenance shutdowns, triggering expectations of tighter supplies and a rise in restocking in trade circles.
While these trade circles have not yet determined the latest estimates of import arrivals at ports in May, a section of traders claimed that it could be at least 30-40 percent lower than the 306,000 mt port arrivals in April, and will offer additional support for local prices.
“For the producers there is further headroom to continue increasing base prices in view of low import competition and tighter supplies,” a Mumba- based distributor said.
“Furthermore, the nervousness in the market in the wake of the geopolitical tensions in the region eased a lot after India and Pakistan announced a ceasefire. Market participants have better confidence in resuming normal business activities,” he said.
$1 = INR 85.12