Local Indian hot rolled coil (HRC) base prices have been maintained during the past week, but steadily tightening supplies from integrated steel mills have pushed up tradable prices across regional markets, SteelOrbis has learned on Monday, November 23.
Traders and market sources have said that base HRC prices of integrated steel mills are unchanged and have been sustained at the higher levels of INR 45,000-45,500/mt ($606-613/mt) ex-works. But tradable prices have edged up by about INR 500/mt ($7/mt) on average across regional markets, moving closer to base price levels.
In the eastern regional HRC markets, the effective tradable price is reported higher at levels of INR 43,500-44,000/mt ($585-593/mt) ex-yard, while trades in western markets are reported at not below INR 44,500/mt ($600/mt) ex-yard, sources said.
Heavy restocking has been reported from all regional markets by most dealers and stockists amid market anticipation that producers will most likely continue to increase base prices, with deliveries for December expected to move up by at least around INR 1,000/mt ($14/mt) on ex-works basis, sources said.
“Inventories have fallen sharply over the past two months and industry estimates indicate that most producers do not have more than 15-20 days’ production equivalent of inventories, with most plants operating well above the 90 percent capacity utilizations level,” an official from Jindal Steel and Power Limited (JSPL) said.
“Flat product demand will continue to rise at least for the next two quarters riding on the faster-than-expected revival in end-user industries. So base HRC prices will continue to be driven by both demand and a cost push,” he added.
$1 = INR 74.20
