Indian HRC prices firm, the price hikes expected

  • Thursday, 22:57 27/09/2018 .
  • Transactions for HRC SS400 grade were concluded within Rupee 46,000-46,500/mt during the week. However, according to sources, prices had already been increased by several Indian mills for next month deliveries. The increase was heard to be within the range of Rupee 750-1,000/mt. Other mills were expected to follow suit in the first week of October, probably after the markets reopen following a holiday on October 2.

    The mills attributed the need for hiking prices to rising raw material costs on account of currency depreciation, especially coking coal which is imported. 

    An Indian stockist said buyers "will have to accept the increased prices," since imports are not proving to be feasible at current levels given the risks involved in foreign exchange fluctuations. However, a mill source cited the "problem of liquidity in the market" given that the cost of funds has arisen in the past several months. The country's central bank, the Reserve Bank of India has increased rates consecutively in the last four months. Market sources expected another rate hike on October 5, when the regulator meets to review the rates which would help bolster the depreciating rupe.