Local Indian hot rolled coil (HRC) trade prices have recorded gains over the past week, but the outlook has remained uncertain as the rise came on the back of very thin trading conditions as business activity has yet to resume fully after the prolonged festival holidays.
Sources said that HRC trade prices are up INR 800/mt ($10/mt) to INR 57,600/mt ($691/mt) ex-Mumbai and are up by INR 900/mt ($11/mt) to INR 58,450/mt ($702/mt) ex-Chennai in the south. The prices gained on only a handful of new bookings received at mills’ stockyards, while trade channels have remained quiet amid the slow post-holiday resumption of business, making it uncertain how the market will trend in the short term.
The lack of any indication from mills on December base prices has also kept trade-level buyers on the sidelines and prices could move in either direction going forward, according to sources.
“There is a strong cost push for producers from rising input costs, particularly imported coking coal which is on the rebound. But there is not much change in the demand situation. This will make pricing a big challenge for mills,” a Mumbai-based trader told SteelOrbis.
“The cost of funding from lending institutions also remains high and trade is cautious on committing fresh bookings, particularly for medium and small-scale distribution firms. We are expecting the market to move into a range-bound trend over the next few weeks,” he added.
$1 = INR 83.30
