With the upcoming Diwali festival, country’s domestic flat products prices have remained stable this week .
Current offers for 2.5mm HRC (IS2062) are being heard at INR 37,500-38,000/MT (ex-Mumbai), INR 37,000-37,500/MT (ex-Delhi) and INR 37,500 /MT (ex-Chennai).
While 0.9mm CRC prices are assessed at INR 43,0000-43,500/MT (ex-Mumbai), INR 44,000/MT (ex-Delhi) and INR 43,500/MT (ex-Chennai). All prices include excise of 12.5%.
The lull in domestic demand is likely to continue till first week of November. As per market sources, JSW Steel and Tata Steel are likely to increase their flat products prices by another INR 500-1,000/MT in the coming month of Nov’16.
Increase in raw material costs (coking coal and iron ore) is also one of the reasons for manufacturers to raise their finish products prices.
However, at present Indian manufacturers do not have much scope to increase their products prices significantly as further price rise may lead to landed cost of imports coming at par with domestic prices.
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