Indian mills continue raising flat steel price; will it sustain ?

All major Indian steel producers have announced consecutive price hikes in HRC, CRC for Sept due to robust domestic demand and tight supply.

Mills have raised CRC prices twice so far this month, except SAIL increasing thrice this month. Meanwhile at the beginning of Sep’20 steel producers have raised HRC prices by INR 2000-2500/t and CRC prices by almost INR 3,000-3,500/t.

HRC prices have witnessed two hikes so far in this month. Govt owned SAIL announced a second price hike by around INR 700/t in HRC today. Current offers are around INR 41,600/t (exy-Mumbai). Meanwhile, JSW Steel is planning for 2nd HRC price hike on 25th Sep by around INR 1000/t, SteelMint learned from company officials.

SteelMint price assessments of key trade markets

• HRC (IS 2062, 2.5 – 8mm) prices are assessed at INR 41,250-41500/t (exy-Mumbai),INR 41,500-42,000/t (exy-Delhi) while INR 42,000-42,500/t (exy-Chennai).
• CRC (0.9 mm IS513 GR) are currently seen at INR 50,000-50,500/t (exy-Mumbai), INR 50,000- 51,000/t (exy-Delhi) and INR 50,000- 51,000/t (exy-Chennai).
• Prices do not include GST extra @18%.
  
  Factors behind consecutive price hikes are
• Traders continue to restock the material in anticipation of a further increase in prices. Improved buying compelled mills to raise prices.
• Supply crunch in CRC due to maintenance issues in couple of steel mills
• Improved demand in the auto, white and yellow goods sector prompted a further hike in CRC prices.
• Imported HRC bookings remain on the lower side

Outlook- Mills are planning for a further hike in flat steel prices for Oct deliveries. However further hike is accepted in the domestic market or not continue to remain uncertain.