Indian integrated steel mills have maintained local hot rolled coil (HRC) prices unchanged during the past week, but the tradable floor price in some regional markets has inched up as producers have sought higher prices for small-tonnage bookings in a market witnessing tight supplies, SteelOrbis has learned on Monday, October 19.
The local HRC base price has been maintained at INR 44,000-44,500/mt ($600-606/mt) ex-works. But buyers reported higher booking prices by producers in western regional markets like JSW Limited at INR 43,500/mt ($593/mt) ex-works, a gain of INR 500/mt ($7/mt) over the previous week.
In the eastern regional market around Durgapur in West Bengal, the indicative booking price of producers like Steel Authority of India Limited (SAIL) was reported at INR 43,000/mt ($586/mt) ex-works, also up by INR 500/mt ($7/mt).
In northern markets around Ludhiana, HRC prices maintained at the previous higher levels of above INR 44000/mt ex-stockyard, market sources said.
“Local HRC prices are roughly about nine percent higher than pre-Covid levels. Input costs like those of coking coal are benefitting domestic producers. While prices are stable, reports of higher inward shipments in the wake of China reducing imports of ex-Australian coking coal is a big positive for Indian steel mills going forward,” an official at Steel Authority of India Limited (SAIL) said.
“Iron ore prices in the domestic market are on an uptrend. But steel mills with captive iron ore mines will be able to maximize margins from sales of HRC at current higher prices. A November price increase too cannot be ruled out as supplies are tight and all mills are carrying low inventories,’ he added.
$1 = INR 73.38
