Monday, Aug 01,
Hot rolled coil (HRC) prices in the domestic market are likely to remain stable in August as demand continues to be sluggish while imports have become cheaper.
Market participants are of the opinion that the fall in international prices of hot rolled coil was also a main reason for domestic mills to keep prices at the same levels in August.
Indian mills are currently selling HRC in the domestic market at Rs 34,500-35,500 ($784-806)/MT ex-mill.
Earlier attempts by domestic mills to raise prices by Rs 500/MT in June were unsuccessful and the increase had to be rolled back.
According to some officials, at least two mills including JSW Steel and Essar Steel both catering to the Western and southern markets will have more HRC production in August compared to July. The production may not be exponentially higher but the impact of even a small increase in an already over supplied market will not be pleasant.
“Importers have already booked HRC at $710 cfr levels which will be every competitive against domestic material these are expected at ports by August-September if they (mills) raise prices further, importers will be encouraged to import more,” said a market participant.
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