Local Indian hot rolled coil (HRC) tradable prices have remained stable during the past week amid negligible trading with buyers attempting to assess the market direction. Some Indian steel mills have started to increase base prices even despite the expected demand contraction due to the impact of lockdown restrictions on manufacturing industries, SteelOrbis learned from trade and industry circles on Monday, May 3.
Local traded prices are still at INR 58,000-60,000/mt ($784-811/mt) ex-Mumbai, while most integrated steel mills have still not changed their base prices, which stand at INR 58,000-62,000/mt ($784-838/mt) ex-works.
The sources said that a demand contraction along with supply disruptions are inevitable, as a major steel producing region like the state of Odisha has announced a complete lockdown to contain the pandemic, with the northern state of Haryana, also a major industrial consumption center, following suit.
At the same time, some Indian mills have already started to announce price hikes. For instance, ArcelorMittal Nippon Steel Limited (AMNS) has decided to hike local hot rolled coil (HRC) prices by INR 4,000-5,000/mt ($54-68/mt). Its prices have accordingly reached up to INR 66,000-67,000/mt ($892-905/mt) ex-works.
“Indian steel output might see some fall owing to diversion of oxygen for medical use. This might somewhat limit supplies in the market and support prices. The profitability of producers too is unlikely to take a hit. On the contrary, it has the potential to improve amid strong exports and higher realizations,” an official at one steel mill said.
