Indian HRC prices gain on tight supply, demand spurt

Indian hot-rolled coil (HRC) prices have increased by INR 500-1000/t this week on tight supplies and gradual restocking after weeks of subdued demand by distributors.

The SteelMint's benchmark price for HRC 2.5mm is assessed at INR 38,500-39,000/t (ex-Mumbai) increase by around INR 1000/t w-o-w, not including GST.

Major Indian steel manufacturers have raised flat steel prices by INR 2000/t w.e.f from 1st Aug'20 amid a steep hike in global offers and improved demand in the domestic market. Mills had raised list prices of HRC and CRC twice last month, by around INR 500-750/t in early-July and by INR 500-1000/t from mid to end of Jul'20.

India's steel demand improved in July after states eased restrictions on economic activities. Demand from construction, automobiles and railways is improving. Meanwhile, demand from the rural sector is also picking up.

"There is a shortage of prompt deliveries as Indian mills are still engaged in fulfilling their export commitments," said a large distributor in the Faridabad region. But demand is still lower than in the pre-Covid period, he added.

"The recent price hike by steel mills is likely to be sustained due to tight availability. Traders and stockists have increased restocking volumes in anticipation of a further hike in prices by mills," said a Mumbai-based distributor.

Price table:

Source - SteelMint Research