Local Indian hot rolled coil (HRC) trade prices have continued to consolidate at higher levels amid strong restocking by both industrial users and trade channels, SteelOrbis learned from trade and industry circles on Monday, January 16.
While the pace of the rise has slowed somewhat, trade prices are almost at a par or even slightly higher than mills’ base prices in some regions, triggering the possibility of producers seizing the opportunity to hike base price towards the close of the current month.
According to the sources, trade HRC price are up INR 400/mt ($5/mt) to INR 57,300/mt ($702/mt) ex-Mumbai and are up INR 200/mt ($2/mt) to INR 56,400/mt ($691/mt) ex-Chennai in the south.
Trade sources are reported to have increased restocking in view of the strong possibility of mills increasing base prices for the second time in January, expected in market circles to be around at least INR 1,000/mt ($12/mt) across all flat product categories.
“Most large integrated mills are believed to have completed export allocations for the last quarter, higher than the previous quarter volumes, after successes in increasing realizations from overseas sales. With the combination of trade prices ruling at a premium over the base prices of mills and overseas demand getting robust, producers are well placed to increase domestic selling prices amid tightening supplies,” a Mumbai-based distributor said.
“While there are differences on the quantum of the upside potential of prices from the current levels, there is near unanimity that the downturn in the local market has runs its course and that the market is now on to the next up-cycle. The government national budget next month will set the mood and determine the strength of the up-cycle,” he added.
$1 = INR 81.60
