Local Indian hot rolled coil (HRC) trade prices have remained largely stable amid quiet trading conditions, with business activity slow to gain momentum after the recent festival holidays and amid the anticipation of base price hikes by mills. Meanwhile, ex-India HRC prices have remained relatively stable over the past week though sentiments have improved slightly on the export front, as SteelOrbis learned from trade and industry circles on Tuesday, November 5.
Ex-India HRC prices have remained stable at $520-545/mt FOB, depending on the destination, while sentiments in the export market have improved slightly amid the recovery of Chinese HRC futures prices, coupled with the emergence of inquiries in the EU region, although no fresh deals have been officially confirmed by the time of publication. According to sources, a trade for 2,000 mt was reported by an eastern India-based mill at $590/mt CFR Antwerp, while another integrated mill concluded a trade for 3,000 mt at $595/mt CFR Rotterdam, though this information has not been confirmed by the time of publication.
Meanwhile, in the case of the Middle Eastern market, following a trade for 20,000 mt at $560/mt CFR UAE last week, this week most offers have remained at the same level, according to sources.
In the meantime, in the local market the sources said that ex-Mumbai HRC trade prices are stable at INR 48,500/mt ($577/mt), while trade prices are also unchanged at INR 50,000/mt ($594/mt) ex-Chennai in the south, with market participants observing that the strong declines seen in the earlier week were checked by reports of November base price hikes by mills expected to be announced over the course of the next few days. They said that base price increases could be potentially in the range of INR 500-1,000/mt ($6-12/mt).
However, according to a steel sector analyst with a Mumbai-based financial advisory firm, local demand was seen to be reviving but its impact on prices will be limited by sustained import pressures. Citing available industry data, he said that an estimated 132,000 mt of imported HRC is expected to land at Indian ports in the first week of November, which would keep local prices under pressure.
$1 = INR 84.11