Local Indian hot rolled coil (HRC) traded prices have moved up during the past week reacting to base price hikes by integrated steel mills and indications from the latter of a further upward revision, thereby triggering a rise in restocking activity among market intermediaries, SteelOrbis learned from trade and industry circles on Monday, October 11.
With base prices moving up to INR 67,000-69,000/mt ($893-920/mt) ex-works, tradable prices have gained around INR 2,000/mt ($27/mt) to the average level of INR 68,000/mt ($913/mt) ex-Mumbai. Some prices INR 500-1,000/mt ($7-13/mt) higher are possible in the southern part of the country.
Trade circles said that the price gains have been matched by an increase in trading volumes with market intermediaries anticipating further price increases as mills have already signalled that shortages in domestic supplies of coal would push up prices.
Producers like Jindal Steel and Power Limited (JSPL) have indicated that sales realizations are still about INR 5,000/mt ($67/mt) lower than they should be amid the impact of the shortage and rising prices of coal in the domestic market, and that steel prices needed to be adjusted further.
“Traded and mills’ prices are currently almost aligned and dispatches from mills to market intermediaries are rising on resumed restocking. Discounted sales seen last month have completely disappeared both at mill and dealer ends,” a Mumbai-based trader said.
“In the short term, we expect local HRC prices to bounce back to the historical high of INR 70,000/mt ($933/mt) ex-works last seen in July 2021,” he said.
$1 = INR 75.00