Steel major JSW Steel has adjusted its prices for hot rolled coils (HRCs) and cold rolled coils (CRCs) for early May 2022 dispatches. It is heard that the company is offering rebates by upto INR 3,000/t ($39/t) against last month’s prices.
Effective prices in May 2022:
-
- HRC (2.5-8mm, IS2062): INR 76,000-76,500/t ($994-1,000/t).
- CRC (0.90mm, IS 513 Gr O): INR 84,000-84,500/t ($1,098-1,105/t).
- Prices are on exy-Mumbai basis, excluding GST @18%.
Slow domestic and overseas trade momentum remains the prime focus behind these announcements, SteelMint learnt from reliable sources.
Factors behind current price adjustments
- Coal price drop: Coking coal prices came down from their average monthly scalding levels of $620/t CFR in March to $510/t CFR in April.
- HRC export price drop: The HRC export index has lost around $100/t m-o-m on softening EU demand and lowering bids from Vietnam and other key markets. As per the last assessment by SteelMint, the index was at $910/t FOB on 3 May, 2022.
- Softening HRC trade sentiments: Sluggish demand and continuous decline in export offers led to dull trade sentiments. Trade-level HRC prices last week dropped by INR 1,300/t ($17/t) to INR 73,000-74,000/t ($955-968/t), and CRCs by INR 2,200/t ($29/t) to INR 83,000-84,000/t ($1,085-1098/t) w-o-w.
Prices are on exy-Mumbai basis, excluding GST @18%.
Outlook
Prices may stay adjusted in the short term, considering that input costs have dipped a little. However, if there is a discernible demand uptick, then mills may have the opportunity to raise prices ahead of the monsoons, especially since higher power tariffs and outages are adding to the cost of production.
Leave a Reply