Local Indian hot rolled coil (HRC) prices have remained stable against the backdrop of falling trade volumes as trade channels have been keen on maintaining “lean inventories” even amid strong market expectations of base price increases by mills in October, SteelOrbis learned from trade and industry circles on Monday, September 18.
Sources said that HRC trade prices have remained at INR 57,700/mt ($695/mt) ex-Mumbai and are also stable at INR 57,400/mt ($692/mt) ex-Chennai in the south.
The sources said that there was near unanimity that mills would increase October base prices, with estimates of increases in the range of INR 1,500-2,000/mt ($18-24/mt). However, the expected hike has not yet triggered fresh restocking as both trade and end-users are tending to keep tight inventories.
“There is some slowdown in the market in terms of trade volumes. The slight pause in trade activity is a positive after the sustained rises seen over past weeks. Participants are reassessing their needs but the demand outlook remains positive,” a Mumbai-based distributor told SteelOrbis.
“Mills are talking of sustained double-digit demand growth through the rest of the fiscal year and hence will aggressively increase prices. There is adequate demand to absorb the hike. At the same time, the local currency hovering at a historical low against the US dollar at INR 83.00 to the dollar affects import competition,” he added.
According to an official at a private steel mill, the Indian government has already extended antidumping levies on certain steel products and the domestic industry is pressing for more products to be brought under the duty and this would further support local pricing.
$1 = INR 83.00