Indian buyers of hot rolled coil continued to resist higher offers made by local mills this week, mill officials and traders said Wednesday.
Mills raised domestic HRC offers by Rupees 2,000/mt ($31/mt), this week despite weak demand.
Lack of buying interest, resulted in a lower hike in spot market trading levels, sources said.
The S&P Global Platts weekly assessment of domestic prices delivered at Mumbai for IS 2062 HRC 2.5-10 mm increased by Rupees 500 to Rupees 43,000-44,000/mt Wednesday, implying a midpoint of Rupee 43,500/mt.
“Mills are offering at Rupees 44,000/mt, but I’m not able to find a buyer at these levels,” a Mumbai-based trader said. “I will not be able to hold stocks for a long time at this price,” he added.
A steel trader based in southern India said he was still hesitant to stock up, but added that “there is no choice but to accept the price hike” because of tight supply.
Buyers are only willing to purchase small quantities to cover immediate needs and are reluctant to restock due to recent price hikes, a Delhi mill official said.
S&P Global Platts’ weekly assessment has increased by Rupees 2,000/mt since the first week of January.
“We need to cover our costs,” a Mumbai mill official said, adding that his shipments of iron ore and coking coal arriving this month, were purchased at high prices in December.