Tight supply and demand may push the price of hot rolled coil in India to the highest level since 2008

According to reports, local hot-rolled coil (HRC) prices in India are expected to rise by another 2000-3000 Indian rupees / tonne (27-40 US dollars / tonne), as steel mills are expected to raise prices for the second time in April. Steel mills will continue to raise basic prices in April and push hot-rolled coil prices to their highest level since 2008, CARE Ratings said in a report.

Analysts believe that growing demand, tight supply and production cuts in China will continue to push up steel prices.

The price of hot-rolled coils in India is still $120 a tonne lower than that of South Korean imports, leaving plenty of room for producers to rise, especially given production cuts by Chinese steel mills and receding import competition.

The rise in new steel prices will have a significant impact on the infrastructure and automotive industries, with construction and real estate accounting for about 55-60 per cent of total steel consumption, the report said.