As SteelMint reported earlier that Indian steelmakers are likely to hike prices sharply in the beginning of new year. Indian manufacturers have announced price hike of flat products by around INR 2000-3000/MT. Prices of flat products are soaring high since the cost of raw materials have been rising constantly.
Current prices of HRC are assessed in the range of INR 45,500-46,000/MT ( ex-Mumbai ),INR 44,500-45,000 (ex-Delhi) and INR 45,500-46,000/MT (ex-Chennai). Prices are inclusive of Excise Duty of 12.5%.
Current prices of CRC are registered in the range of INR 49,000-50,000/MT (ex-Mumbai), INR 49,500 – 50,000/MT (ex-Delhi) and INR 49,000-50,000/MT (ex-Chennai). Prices are inclusive of excise Duty 12.5%.
Higher raw material prices has propelled the manufacturers to pass on the the escalated cost to the consumers as the increased production cost is hurting the profit margins in the steel industry. Though steel prices are surging but they are still at lower levels as compared to the prices in 2014.
Domestic flat product prices are constantly rising owing to hike in coking coal prices. Even coking coal prices are also moving down to USD 250/MT from its peak level to USD 350/MT. Besides this, surge in global prices have also given enough room for the Indian manufacturers to raise the prices.
As far as demand is concerned it remains lull as the effect of post demonetization continues to prevail in the market. Therefore any hike in flat products prices might not be absorbed in the market.
Rise in Plate prices
Indian manufacturers have also raised plates prices along with flat products. Hike in HRC coils prices leads to rise in domestic plate prices.
Current offers of commercial grade plate are hovering in the range of INR 36,500-37,000/MT (ex-Mill).Prices are exclusive of Excise duty 12.5%.
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