After two successive weeks of decline, hot rolled coil prices (HRC) increased by ₹500 a tonne to ₹59,700 on high coking coal cost and robust global steel prices.

Spot spread (difference between spot and contract prices), however, continues to languish at an eleven-month low level. Going ahead, traders expect a price hike of ₹1,000-1,500 a tonne for March owing to favourable import parity and much-improved export realisation. Primary rebar prices continue to stay at a premium to HRC.

In China, HRC appears to be on a stronger footing with declining inventory amid expectations of favourable policies, said Amit Dixit, Research Analyst, ICICI Securities.

Besides, he said market participants expect steel prices to remain supported owing to the cost push and recovery in China demand.

Read also: Steel industry’s story in 2022 and beyond

India’s export price persisted at $705 a tonne, the highest in South East Asia region, amid price increase of $25 a tonne by the Far-East players and $15 a tonne by Chinese and Russian companies.

Export volume also picked up and in January, it rose 33.5 per cent month-on-month to 0.75 million tonne, the highest in the past eight months.

On the import parity front, domestic prices are at par and a discount to the landed cost of imports from Far-East countries and China, respectively. Hence, no pressure on import in the near term, he said.

While the real estate market in China is showing the initial signs of improvement, more clarity on stimulus measures in China is expected post Chinese New Year and their impact on the overall steel demand.

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