New Delhi [India], January 21 : Seasonal demand and improved inventory drawdown have pushed Indian Hot Rolled Coil (HRC) prices upward, even as exports remain muted in the international market.
According to the latest sector update from IDBI Capital, domestic HRC prices increased by 2.4 per cent Week-on-Week (WoW) to reach Rs 52,000 per tonne. This trend in the ferrous segment comes at a time when coking coal prices have experienced a significant double-digit spike due to environmental factors affecting global supply chains.
The IDBI Capital report highlights that coking coal prices surged by 10.5 per cent WoW to USD 190 per tonne. This sharp increase is primarily attributed to heavy rainfall in Queensland, Australia, which disrupted the met coke supply chain.
Queensland is a critical hub for the sector as it produces approximately 85 per cent of Australia's total coal output. Similarly, the domestic semi-finished steel segment saw movement as Billet-Ex-Raipur prices increased by 4.5 per cent WoW to Rs 41,500 per tonne. This rise occurred as "manufacturers quoted higher prices despite limited market activity in semi-finished steel segment."
In the regional market, Iron Ore prices in Odisha saw a 1.9 per cent WoW increase to Rs 8,000 per tonne. This growth was "driven by a hike in OMCs base price and a recovery in downstream steel market."
Meanwhile, Chinese HRC prices rose by 1.7 per cent WoW to Rs 42,887 per tonne. The report notes that these prices were "aided by supportive monetary policies and targeted economic measures introduced in the domestic market," though domestic consumption in China remains fragile due to subdued demand.
The non-ferrous segment presented a mixed performance during the same period. While Zinc prices increased by 2.1 per cent WoW to USD 3,174 per tonne and Tin prices climbed by 5.2 per cent WoW to USD 47,914 per tonne, other metals faced downward pressure. Copper prices decreased by 1.3 per cent WoW to USD 12,865 per tonne as "China released weak macro data raising concerns over future demand." Nickel prices also saw a marginal decline of 0.7 per cent WoW, settling at USD 17,390 per tonne.
In the energy sector, Brent crude prices increased by 0.6 per cent WoW to USD 64 per barrel. The report attributes this movement to the de-escalation of the "Iran-US geopolitical scenario."
In contrast, Natural gas prices remained flat WoW at USD 3.4 per MMBtu. Aluminum prices also held steady at USD 3,143 per tonne, following a reported 29 per cent surge in warehouses by the SHFE, which signals a "near term supply comfort." Lead prices remained unchanged at USD 2,000 per tonne.