Hike in HRC/CRC prices by Indian steel majors is likely to be announced on Monday. However, Steel Secretary has mentioned that MIP can be revoked even before 6 months if prices are hiked unreasonably.
Domestic prices of HRC/CRC have remained unchanged this week amid quiet market. With not much buying interest at hiked prices, traders didn’t opt for further increment in prices in the retail market.
However, if market sources are to be believed, Indian steel majors are planning another hike in flat product prices of INR 1,000-1,500/MT from Monday, 15 Mar’16.
“Prices in traders market are stable as there is not much buying interest from end user segment. However, manufacturers are planning another rise in prices. This hike from manufacturers end is possible because the price surge in traders market post MIP announcement have been much higher than what manufacturers have actually increased”, quoted a trader based in Faridabad.
Current offers for 2.5mm HRC is being assessed at INR 34,700/MT (ex-Delhi), INR 34,000-34,500/MT (ex-Mumbai) and INR 34,500-35,000//MT (ex-Chennai).
While 0.9mm CRC is being offered at INR 39,000/MT (ex-Delhi and Mumbai) and INR 39,000-39,500/MT (ex-Chennai). All prices include excise of 12.5%
The final decision on safeguard duty case on HRC is likely to be announced within a few days. As per SteelMint analysis, If the safeguard duty is phased out, then the domestic HRC prices will almost come at par with the landed cost of imports.
”Domestic Prices cannot be increased arbitrarily”: Steel Secretary
In an interview, Steel Secretary, Ms. Aruna Sundarajan has mentioned that government is keeping a close watch on price hikes by manufacturers.
However, if these price increments are found to be unreasonable and downstream industries are found to be hit badly, government will review the whole price mechanism and if necessary will revoke MIP before even six months.
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