Major Indian steel manufacturers have raised flat steel prices upto INR 2000/MT in the start of CY18 owing to rapid surge in iron ore prices in domestic market along with uptrend in imported coking coal offers to India.
However traders have already increased the flat steel prices last week amid anticipation of price hike by manufacturers.
Higher raw material prices and optimistic buying sentiments have resulted in surge in domestic flat steel prices.
Surge in iron ore prices lead to higher flat steel prices in domestic market-National Mineral Development Corporation (NMDC, Chhattisgarh) has increased iron ore prices by INR 460-580/MT for Jan deliveries.
Iron ore prices boost further amid supply crunch since five working iron ore mines in Odisha have gone out of operations as they failed to shell out the penalties mandated by the Supreme Court .The mines are :Mesco Steel, Serajuddin & Company, government owned IDCOL and National Enterprises. Thus hike in iron ore prices has compelled the Indian steelmakers to raise the flat steel prices in domestic market.
Imported coking coal offers in India Moved Up Further-Temporary suspension of coking coal supply from Australia has lead to higher offers of imported coking coal to India .Indian steel mills have huge dependency on coking coal imports which is continuously increasing.Thus pushing the flat steel prices upwards in domestic market.
Thus trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 42,000-42,500/MT (ex-Mumbai), INR 42,000-42,500/MT (ex-Delhi),INR 42,500-43,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18%.
As per SteelMint assessment current trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 46,000-46,500/MT (ex-Mumbai) INR 45,500/MT (ex-Delhi) and INR 46,500-47,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18%.
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