Major Indian steel makers are eyeing for sharp price hike of INR 5,000-6,000/MT in flat steel products in the near term. However market participants are less bullish over prevailing dull demand in domestic market.
On 1st Dec’16 Indian steel makers had raised flat product prices by INR 3000/MT, amid higher production cost. Increase in coking coal and iron ore prices have compelled the manufacturers to pass on the escalated cost to the consumers.
Indian manufacturers are up with bullish sentiments and are planning for further price hike of INR 2000/MT by the last week of Dec ‘16, and if the market supports this price hike, they may go for another price rise of INR 3,000-4,000/MT in first week of Jan’17.
Apart from increased production cost, another reason is, the landed cost of HRC imports to India is hovering in the range of INR 45,000-47,000/MT whereas domestic prices of HRC are assessed in the range of INR 41,500-42,500/MT. Hence Indian manufacturers have enough scope to raise the domestic prices to come at par with landed cost of imports.
However on the other hand,dealers and traders are sounding less bullish for the anticipated price hike as domestic demand is still dull and has forced Indian manufacturers to explore export options.
Also, as per market sources report to SteelMint, Indian importers have booked 60,000-70,000MT of flat products from Japan and Korea which may also have an adverse impact on company’s sales volume in Jan’17.
Current offers of HRC 2.5 mm (IS 2062) are assessed in the range of INR 41,500-42,000/MT (ex-Mumbai), INR 42,500 (ex-Delhi), INR 42,000-42,500/MT (ex-Chennai). Prices are inclusive of Excise duty of 12.5%.
Current offers of CRC 0.9mm are registered in the range of INR 47,000-47,500/MT (ex-Mumbai), INR 48,000-48.500/MT (ex-Delhi),and INR 46,000-46,500/MT (ex-Chennai). Prices are inclusive of Excise Duty of 12.5%.
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