As anticipated, local Indian hot rolled coil (HRC) prices have showed significant gains riding on expectations of domestic mills increasing base prices over the next few days, the improved level of restocking by trade channels, and stable imports in the wake of the hardening of global prices, SteelOrbis learned from trade and industry circles on Monday, October 7.
Sources said that local trade HRC prices have increased by INR 1,400/mt ($17/mt) to INR 48,600/mt ($580/mt) ex-Mumbai and are up INR 1,500/mt ($18/mt) to INR 51,500/mt ($614/mt) ex-Chennai in the south.
According to the sources, large integrated mills are expected to increase base prices by around INR 1,500/mt ($18/mt), driven by the slight easing of the rate of growth in import bookings. They said that base price hike announcements could be expected by Wednesday or deferred until next week after the festival holidays.
Trade channels particularly those serving the major trading hubs of Mumbai and Delhi in the north were seen to be actively restocking ahead of the festivals as the uptrend is expected to be sustained in the medium term.
Meanwhile, based on vessel arrival schedules, import volumes to land in October are estimated by trade circles at 246,000 mt, showing that the rate of import bookings is slowing down following the hardening of global prices led by China.
“The market conditions both in terms of prices and trading volumes are looking better. However, it is difficult to forecast the sustainability of the uptrend. Taking a macro view, economic and industrial growth still remains sluggish. The festival holidays starting in two days will lead to reduced activity. A more definitive trend will emerge only after that,” a Mumbai-based distributor told SteelOrbis.
$1 = INR 83.80