Few major Indian steel manufacturers have increased flat steel prices by INR 1000-1500/MT amid rise in production cost, improved export realizations and costlier imports.
Presently, reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 38,500/MT (ex-Mumbai) and INR 38,500-39,000/MT (ex-Chennai). The prices mentioned above are basic prices excluding GST @ 18%.
As per SteelMint assessment current reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 43,000-44,000/MT (ex-Mumbai) and INR 43,000/MT(ex-Chennai). The prices mentioned above are basic prices excluding GST @ 18%.
Which all factors have resulted in domestic price hike ?
1.Higher raw material cost –
Coking coal ( Premium HCC) prices have already crossed the levels of USD 200/MT,CFR India and iron ore prices have also shown upward trend in global market.This propells the Indian manufacturers to pass on the increased cost to the consumers.
2.Costlier imports – HRC imports from China,Japan and South Korea have become costlier on rising global prices which provides enough room for Indian manufacturer to increase flat steel prices in domestic market. Chinese HRC export offers are currently assessed at USD 550-560/MT, FoB.
3.Improved export realizations – Amid hike in global offers, Indian steel mills have put their HRC export offers on hold since couple of weeks and are planning to raise the offers in near term.
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