Tuesday, 05 October,
Strengthening rupee has been a concern for Indian steel industry say experts. “We have seen a recent rally in Steel prices in India after major Steel players raised their October prices. Presently, Indian Steel prices are hovering around Rs 32,000-34,000/MT for flat and long products. This hike is majorly due to high raw material cost and improved demand. But appreciating rupee is a concern for Indian Steel industry; as rupee strengthens Chinese imports become cheaper. Presently, imported Chinese HR coils are at $600/MT CFR India. Rupee has gained 4-5% to Rs 44.21 for $1 since September.” said a Steel analysts based in Mumbai.
Landed cost of HR coils are cheaper by approx Rs 2,000-3,000/MT compared to domestic prices. But, high iron ore prices and low availability of Scrap will keep Indian steel prices at these levels. “We are more concerned about the demand, rather than cheap import from China. If demand picks up, price hike is justified” said a Steel manufacturer based in Mumbai.
Leave a Reply