Indian flat steel prices remained stable this week however major Indian manufacturers are planning for another price hike of INR 1000-1500/MT in near term on rising production cost.
Hike in global prices,increased production cost and improved domestic demand has propelled the Indian manufacturers to raise the flat steel prices further in the domestic market. Major mills are likely to come up with price hike announcement in the coming few days. However, as of now prices continue to remain at last week levels.
Presently, prices remain unchanged this week and reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 37,500/MT (ex-Mumbai),INR 36,500/MT (ex-Delhi) and INR 37,000/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 42,000-43,000/MT (ex-Mumbai),INR 41,000-42,000/MT (ex-Delhi) and INR 42,000/MT(ex-Chennai). The prices mentioned above are basic prices excluding GST @ 18%.
Higher production cost and boost in global prices leads to rise in domestic prices-Iron ore fines Fe 62% index has crossed USD 75/MT, CFR China.Similarly coking coal (Premium HCC) prices is anticipated to mark USD 200/MT,FoB Australia. Thus manufacturers are passing on the inflated cost to the consumers.
Also amid sharp hike in Chinese HRC export offers, realizations in exports has improved significantly. Therefore major mills have put their HRC export offers on hold in order to have clarity on the market scenario. Following this, the steel mills are seen focusing on domestic sales.
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