This coming year Indian flat steel market look optimistic with bullish sentiments as the major steel-makers are planning to raise the flat products prices owing to higher raw material cost and marginal demand .
Hence, Indian manufacturers have planned to increase the prices by INR 5000-6000/MT in Jan’17 on high production cost. But due to sluggish demand and liquidity crunch prevailing in the domestic market, it is expected that steel-makers may play safe by making the hike of INR 2000-3000/MT.
Current offers of HRC 2.5 mm (IS 2062) are assessed in the range of INR 43,000-43,500/MT (ex-Mumbai), INR 44,000-44,500/MT (ex-Delhi). Prices are inclusive of Excise duty of 12.5%.
Current offers of CRC 0.9mm are registered in the range of INR 48,000/MT (ex-Mumbai), INR 49,000-49,500/MT (ex-Delhi). Prices are inclusive of Excise Duty of 12.5%.
However, post demonetization, domestic sales volume has reduced ,owing to this, sharp increase in flat products prices might not be absorbed in the market Therefore, Indian manufacturers are exploring more export options to offset the impact of dull domestic demand.
But on the other hand, Chinese steel market which is considered to be the benchmark has also witnessed the fall in flat steel prices this week since China’s domestic market has started to show the down-trend.
As per the market sources to SteelMint, Indian importers from West coast of India have booked 40,000-50,000 MT of flat products from South Korea for Jan’17 shipments. Flat steel imports to India in Jan’17 are expected to be higher compared to Dec’16.Therefore higher imports will pressurize domestic sales volume.
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