Indian steel manufacturers have announced price hike in flat steel for May. Mills have raised prices upto INR 1000/MT (USD 15).
Market sources shared with SteelMint that major steel manufacturers have officially announced increased prices today in flat products by INR 750-1000/MT for the month of May.
Domestic HRC prices have climbed further owing to limited availability of material in domestic market over less inventories. Meanwhile lesser import bookings amid higher global steel prices and good demand has given a reason to Indian steel manufacturers to raise the prices in domestic market.
Strong sales numbers reported in auto industry in April – The beginning of this fiscal has been optimistic for Indian auto sales industry. Maruti Suzuki reported 14.4% Y-o-Y increase in sales in Apr’18. As per reports Maruti Suzuki expects its sales to grow in double digits this fiscal year. It plans to undertake measures to improve productivity at its manufacturing facilities in Haryana to meet demand. Maruti Suzuki India Limited sold a total of 172,986 units in Apr’18 compared to 151,215 units in Apr’17.
After price hike JSW Steel’s HRC (2.5 mm- 8mm,IS2062) is around INR 46,500-47,000/MT and that of Essar Steel is in the range of INR 45,500-46,000/MT. Also government owned PSU – SAIL is quoting HRC prices at around INR 46,250/MT.The prices mentioned above are basic prices for Mumbai region excluding GST @ 18%.
Similarly prices of CRC (IS513) 0.9mm offered by major mills are : JSW is offering CRC in range of INR 51,500-52,000/MT.And SAIL is offering CRC at INR 51,500/MT.The prices mentioned above are basic prices for Mumbai region excluding GST@18%.
However increased prices are yet to be passed on to traders market.Thus it will be interesting to observe that the consecutive increase in flat steel prices shall be absorbed in domestic market or it will lead to decline in coming months.
Last month steel mills have increased the prices of flat steel by upto INR 1000/MT in the month of April.
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