Indian mills have kept the flat steel prices unchanged this week as per sources and they are planning for hike of around INR 1000-1500/MT (USD 16-24) amid supply constraints prevailing in domestic market.
This week Indian flat steel prices remained stable over slow demand in domestic market.However market sources reported to SteelMint that major steelmakers are expecting further hike in flat steel prices backed by shortage of inventories in local market.
Supply constraints from major mills is the one of the significant reasons for further surge in domestic flat steel prices as few mills are heard to be undergoing maintenance shutdown . Also few Indian mills have backlog export orders.
Also, landed cost of Chinese HRC imports to India is still costlier by around INR 1500/MT than domestic prices in India. However HRC imports from Japan and South Korea is almost at par with prevailing domestic prices, however these countries have limited export allocations.
Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 43,000/MT (ex-Mumbai), INR 43,000-44,000/MT (ex-Delhi),INR 43,000-44,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18%.
Trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 46,500-47,000/MT (ex-Mumbai) INR 47,000-47,500/MT (ex-Delhi) and INR 46,500-47,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.
However few trade sources reported that some traders are restocking material in anticipation of further price rise in coming month.
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