Domestic hot-rolled coil (HRC) prices rose in India this week as mills lifted their offer prices in line with global trends.
The Argus weekly assessment for HRC with 3mm thickness was 37,000 rupees/t ($505/t) ex-Mumbai, up by Rs1,000/t on the week. Offers by major integrated mills were higher by Rs1,000-2,000/t at Rs37,500-38,000/t, while bids were at Rs36,500/t.
Major Indian mills have increased HRC exports in recent months, with offers currently at around $510/t cfr Vietnam.
Most integrated mills had signalled a price increase in the final week of December, which led to stockists and traders raising purchases last week.
Buying is muted this week as traders and consumers anticipate prices to fall in the coming weeks. Traders have stocked up for the Hindu festival of Sankranti on 14 January, with market participants expected to be away from 10-17 January.
Offers for domestic coated steel products also increased this week because of a supply shortage of thinner gauges of HRC. India's steelmakers are exporting re-rolling grade to southeast Asian markets, resulting in lower availability of such volumes in the Indian market, said the Mumbai-based manager of a steel mill.
Offers for galvanised sheet of 0.80mm thickness with zinc coating of 80 grams/square metre (gsm) rose by Rs1,000/t this week to Rs48,000/t ex-Mumbai. Galvanised sheets of similar thickness with higher zinc coating of 120gsm were offered lower at Rs52,000/t. Colour coated material of 0.5mm thickness with 120gsm was offered at Rs58,000/t ex-Delhi.
