Only recently in the start of September month, Indian manufacturers had raised their domestic flat products prices by INR 1,500-2,000/MT.
However, SteelMint has now heard from its market sources that manufacturers have hiked their products prices once again by INR 500-700/MT amid increasing raw material (coking coal) cost.
The coking coal prices in global market have doubled in past one month and by 160% in past eight months. This price rally in coking coal has been triggered due to limited supply from major coal producing nation, Australia. Bad weather and operating issues have kept coking coal supply subdued in Australia this year.
Although, there is no significant improvement in demand for steel in India, manufacturing cost from steel producers have moved up by INR 5,000/MT in past eight months compelling manufacturers to increase their products prices.
Current offers for 2.5mm HRC are being assessed at INR 37,000/MT (ex-Mumbai) and INR 36,800/MT (ex-Delhi). Whereas offers for 0.9mm CRC are assessed at INR 42,500/MT (ex-Delhi and Mumbai). Prices include excise of 12.5%.
With imposition of anti-dumping duty on flat products in the first week of Aug’16, imports in India are almost restricted giving enough scope to the manufacturers to increase their prices amid subdued demand. The effective increase in flat products prices post anti-dumping duty imposition is about INR 4,000-4,500/MT.
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