Week 49 has opened with the rise in domestic flat product prices by INR 1,500-2,000/MT. Indian manufacturers have raised the flat product prices amid currency demonetization policy in India.
Banning of higher denomination notes has created liquidity crunch in the domestic market. Despite this, steel biggies are planning further rise in flat product prices.
Current offers of 2.5 mm HRC (IS2062) are being assessed in the range of INR 40,000- 41,500 (ex-Mumbai), INR 40,000-40,500 (ex-Delhi) and INR 39,500-40,000 ( ex-Chennai).
Whereas, current offers of 0.9mm CRC are recorded in the range of INR 44,500-45,000/MT (ex-Mumbai), INR 45,000-45,500 (ex-Delhi) and INR 44,000-44,500 (ex- Chennai).
As far as demand is considered it will remain moderate. However it is anticipated by the manufacturers that the hike in flat product prices will be accepted in the domestic market as this period is considered to be the peak season for the steel industry.
JSW Steel hiked flat product prices, SAIL to follow the suit
Although, JSW Steel, a leading steel giant has raised the flat product prices last week and its effect can be seen in the market. Following the trend, SAIL (Steel Authority of India) is also planning to raise the flat product prices by INR 1,500-2,000/MT.
However, rise in cost of iron ore and coking coal prices is driving the Indian manufacturers to increase the prices of flat products which is ultimately passed on to the end users.
Leave a Reply