In the past week, trade activity in the Indian flat steel market has remained on a flat trend, while no slowdown is seen in the rise of flat steel prices. Indian flat steel producers have in succession continued to increase their prices. Due to the continuous flat steel price hikes in the past one-month period, buyers no longer expect prices to be adjusted downwards and so they are now expected to start purchasing, in anticipation of further flat steel price increases. Accordingly, some buyers have already concluded some flat steel bookings this week.
SteelOrbis has learned that in the local Indian market producers' hot rolled coil (HRC) offers are currently standing at INR 34,000-34,500/mt ($752-763/mt) ex-works. Indian buyers, who did not even find levels INR 1,500-2,000/mt ($33-44/mt) below the mentioned price range workable in previous weeks but preferred to maintain a wait-and-see stance, are expected to decide their next moves in the coming days.
Import flat steel offers to India have also showed increases. Some transactions have been reported for HRC offers given by the Russian steelmaker Severstal last week at $710/mt CFR. Meanwhile, after these transactions, Severstal has withdrawn this offer, stating it will revise the price level, thereby increasing expectations of a possible price hike. While no flat steel offers are currently heard from Russia to the Indian market, new flat steel offers are predicted to increase by $30-40/mt as compared to previous price levels. SteelOrbis has learned from market sources that HRC offers to India from China and Taiwan are currently standing at $730-740/mt CFR Mumbai.
Generally speaking, increased production costs as a result of raw material price hikes, such as in iron ore, scrap and coke, have contributed to the recent steep price increases in flat steels. With their flat steel inventories having diminished, Indian buyers are now expected to start their purchases of flat steel amid the current rapid price hikes. In the meantime, hardly any market players now expect a downward correction of flat steel prices.