Major Indian steelmakers have increased the flat steel prices by INR 1500-2000/MT for September bookings amid increase in raw material prices and costlier imports.
In line with SteelMint’s previous report, Indian flat steel prices have witnessed price hike in 1st week of September. Steel mills have raised prices on account of higher production cost and upsurge in global flat steel prices resulting in costlier imports. Also rising global export offers lead to costlier imports which provide enough room to the Indian producers to surge the prices in domestic market.
Premium HCC Coking coal prices moved up by USD 30/MT in last one month and are heard in the range of USD 220/MT,CNF India.
In case of iron ore, NMDC has raised iron ore prices upto 9% (INR 240/MT) M-o-M for September deliveries. Odisha based merchant iron ore miners have increased prices upto INR 600/MT in Aug’17.
Above mentioned factors support the rise in domestic flat steel prices but on the other hand market participant observed that price hike seems difficult to be absorbed owing to slowdown of buying activities in the domestic market.
Global steel prices continues to remain on higher side after Chinese Bengang BF incident resulting in costlier imports.
Currently, reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 40,000-40,500/MT (ex-Mumbai), INR 40,000-41,000/MT (ex-Chennai) and INR 38,500-39,000/MT (ex-Delhi).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 44,000-44,500/MT (ex-Mumbai), INR 44,500-45,000/MT(ex-Chennai) and INR 42,000-43,500/MT .The prices mentioned above are basic prices excluding GST @ 18%.
After the introduction of GST domestic HRC prices in India have recorded surge of INR 4500/MT in Indian flat steel market.
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