Local Indian hot rolled coil (HRC) trade prices have inched up amid reports of large mills “unofficially” increasing prices even though this has not yet been reflected in official price lists, while trading activity has remained sluggish, SteelOrbis learned from trade and industry circles on Monday, April 29.
Sources said that HRC trade prices have move up marginally by INR 150/mt ($2/mt) to INR 52,500/mt ($630/mt) ex-Mumbai and are up INR 500/mt ($6/mt) to INR 54,000/mt ($647/mt) ex-Chennai in the south.
According to the sources, in line with the recent trend, some large integrated steel mills have increased HRC base prices by around INR 500/mt ($6/mt) terming it as an “interim adjustment”, while not making any changes in official price lists.
They said that some of these large mills are charging a higher price for fresh bookings, but are keeping official price lists unchanged, which gives the producer greater flexibility to roll back the increased price in a shorter time frame in case of market resistance, without having to go through the process of official ratification by the designated pricing committees at companies.
A section of the market maintains that HRC prices could rise as more mills plan maintenance shutdowns in May and June, and even forecast them to touch the INR 57,000/mt ($684/mt) level amid a combination of supplies tightening and the national elections being completed in June and the formation of a new government expected to improve the overall market mood.
$1 = INR 83.30