Local Indian hot rolled coil (HRC) trade prices have improved on the back of renewed restocking by trade channels amid reports of several large mills planning maintenance shutdowns and the possibilities of supplies tightening over the next few months, SteelOrbis learned from trade and industry circles on Monday, April 22.
Sources said that HRC trade prices have gained INR 550/mt ($7/mt) to INR 52,350/mt ($630/mt) ex-Mumbai and are up INR 1,000/mt ($12/mt) to INR 53,500/mt ($640/mt) ex-Chennai in the south.
Sources said, citing reports from companies, that Tata Steel’s rolling mill in Odisha is slated to go in for a maintenance shutdown later this week, while Steel Authority of India Limited’s Bokaro steel mill’s rolling mill is already in a shutdown. They said that some other mills are also considering shutdowns in the May-June period.
The shutdowns would lead to supplies tightening, prompting increased restocking by distributors, the sources said.
“HRC trade prices have improved owing to changes in the supply-side dynamics. We do not see significant upside potential going forward because demand in end-use industries remains sluggish,” a Mumbai-based distributor told SteelOrbis.
“Sentiments will also remain nervous from political uncertainties till the ongoing national elections close in June and a new government takes charge. In the interim, trade prices will be determined by the balance between existing inventories and by how much volume is reduced in the wake of mills’ shutdowns,” he added.
$1 = INR 83.50