SteelMint learnt from its market sources that Indian manufacturers have increased the flat products prices by 1,000-1,200/MT (USD 15-18/MT) amid rise in raw material prices.
Notably, the coking coal prices in global market has increased rapidly in the month of Oct ‘16 by USD 17-18/MT. Coking coal prices are rising due to limited supply and increased demand from China.
Although, there is no significant improvement in demand in India, manufacturing cost from steel producers have moved up significantly in past nine months compelling manufacturers to increase their product prices.
Current offers for 2.5mm HRC are being assessed at INR 32,500-33,500/MT (ex-mill) and offers for 0.9mm CRC are assessed at INR 37,000/MT (ex-mill). Whereas plate offers are registered at INR 32,000-32,500/MT (ex-mill).Prices exclude excise duty of 12.5%.
High inventories with traders and stockiest
Traders and stockiest report higher inventory levels as compared to last few months. Most of them are sitting on inventories which were booked at previous month’s price.
Most of the stockiest mention,” Liquidity issue and weak demand still persists in the market. Prices have not changed in retail market, however companies have increased their list for November.
If situation continues, companies may give rebate by end of this month.”
Flat Product Prices as on 5 Nov’16
| Product | Grade,
Size |
Ex-Mill (Excl Excise) | Ex-Delhi (Incl- Excise) | Ex-Mumbai (Incl- Excise) |
| HR Coil | 2.5mm | 32,500-33,000 | 38,000-38,500 | 37,500-38,000 |
| CR Coil | 0.9mm | 36,500-37,000 | 43,500-44,000 | 43,000-43,500 |
| HR Plates | 8-10mm | 32,000-32,500 | 37,000-37,500 | 37,500-38,000 |
Prices in INR/MT
Source-SteelMint Research
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