The week 39 opened with upward movement of INR 1,000-1,200/MT in domestic flat products prices.
Current offers for 2.5mm HRC (IS2062) are assessed at INR 38,000/MT (ex-Mumbai), INR 37,800/MT (ex-Delhi) and INR 37,200/MT (ex-Chennai). Prices include excise of 12.5%.
While offers for 0.9mm CRC are assessed at INR 43,000/MT (ex-Delhi and Mumbai) and INR 41,500-42,000/MT (ex-Chennai). Prices include excise of 12.5%.
Although there is no significant improvement in demand, domestic prices have moved up on account of supply constraints in the market. As per market sources, Indian manufacturers have booked good quantity of exports over past two months, thus restricting supply in the domestic market.
Also currently Indian buyers are making bulk bookings in anticipation that prices may move up further, creating fictitious shortage of material in the market.
The effective increase in flat products prices in past two months after the announcement of anti-dumping duty is of INR 5,500-6,000/MT. There are news in the market that prices may increase further in the upcoming month of October.
“Given the increasing raw material, coking coal costs, Indian manufacturers are forced to pass on the same to the consumers. Our cost of production has increased by INR 5,000-6,000/MT over past few months”, quoted an official of a leading steel manufacturer.
After imposition of anti-dumping duty, imports in to India have become highly restricted as the landed cost of imports have increased to INR 45,000-46,000/MT. This has given scope to the domestic manufacturers to increase their products prices amid subdued demand and inflated raw material costs.
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