Indian hot rolled coil (HRC) base prices have been maintained in the range of INR 44,000-44,500/mt ($603-610/mt) ex-works, after an increase of INR 1,500/mt ($20/mt) announced last week. The tradable price was at INR 43,500/mt ($596/mt) ex-yard on average amid brisk trading and a rise in fresh bookings received by producers, SteelOrbis learned on Monday, October 12.
With producers increasing base prices for the fourth consecutive month, the reaction in the market has remained positive with little downside side risk indications evident from strong buying by end-users and sustained restocking by market intermediaries in anticipation of the revival in user industries continuing to gain momentum in the current quarter and the forecast of integrated steel mills further pushing up base prices in November.
Tradable price levels have increased by an average of at least INR 1,000/mt ($14/mt) on ex-works basis over the past one week.
Since July, producers have successfully increased base prices by a cumulative INR 7,000/mt ($96/mt) without triggering any resistance from either end-users or market intermediaries, the traders said.
Market sources said that, while integrated steel mills in the western region like JSW Steel Limited concluded bookings at prices of around INR 43,000/mt ($589/mt) ex-yard, steel mills in eastern regional markets like mills of Steel Authority of India Limited (SAIL) around the states of West Bengal and Odisha were reported to be concluding bookings at prices slightly lower - at around INR 42,500/mt ($582/mt) ex-works.
The highest traded price was reported from the northern region around Ludhiana in Punjab state at around INR 44,500/mt ($610.mt) ex-stockyard, the sources said.
“With the latest round of base price hikes, HRC prices in local market have crossed the pre-Covid level of INR 42,000/mt ($576/mt) without facing any market resistance and, with bookings continuing to rise, producers still have headroom to further push up base price levels,” an steel sector analyst at a Mumbai-based financial services firm said.
“Dealers have new confidence to restock despite higher prices. Producers have limited stocks and leverage in the market to continue to increase prices,” he added.
$1 = INR 72.98
