Following increase in global flat products offers, Indian manufacturers also raised their domestic prices by INR 1,000-1,200/MT.
SteelMint has yesterday reported that Indian manufacturers are likely to increase flat products prices this week.
In a recent update on the same, sources have informed us that domestic players have increased their HR/CR prices by INR 500-1,000/MT. SAIL has raised its price by INR 1,000/MT whereas JSW Steel’s hike is by INR 1,200/MT.
Current offers for 2.5mm HRC are assessed at INR 36,000/MT (ex-Delhi), INR 35,500-36,000/MT (ex-Mumbai) and INR 36,500-37,000/MT (ex-Chennai). All prices include excise of 12.5%.
Offers for 0.9mm CRC are assessed at INR 41,000-41,500/MT (ex-Delhi), INR 40,500-41,000/MT (ex-Mumbai), and INR 41,000/MT (ex-Chennai). Prices include excise of 12.5%.
This price increase has come following the upsurge in global HRC prices. Global HRC prices have increased by USD 150-200/MT in last two months resulting which imports have become costlier, giving scope to domestic players to hike their prices.
Demand Outlook
Although few market participants believe that there is sluggish demand in the market, some believe that domestic demand has improved since third week of Apr’16.
In construction and infrastructure sector, Jan-May is peak season for construction activities in India. However, scarcity of water throughout the country has halted many projects resulting in slack in demand especially for long steel.
However if we analyze the demand from automobile sector which is a major consumer of flat steel products, the outlook for FY17 is positive this year. The sector has been facing slowdown since last two years.
According to industry experts, improved macroeconomic environment due to faster GDP growth, easy financing options from banks, fuel cost has led to improved demand outlook for the auto sector in FY17.
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