Indian Manufacturers Hike Flat Product Prices

As anticipated, Indian steel majors, JSW Steel and SAIL have increased HRC, CRC prices by INR 500-1,000/MT with effect from Monday.

Yet another price increment was anticipated from Indian steel manufacturers with the start of new financial year in April. Post MIP, Indian steel majors have increased flat products rates effectively by INR 4,500-5,000/MT and after this hike, prices have surged by INR 6,000-6,500/MT.

Currently 2.5mm HRC is assessed at INR 35,000 (ex-Delhi and Mumbai) and at INR 35,000-36,000/MT (ex-Chennai), prices include excise of 12.5%.

However, 0.9mm CRC is assessed at INR 39,500-40,000 (ex-Mumbai and ex-Delhi) and at INR 39,000 (ex-Chennai), prices include excise of 12.5%.

Limited Scope of Further Increase in Prices

As per market sources, there is not much improvement in demand but further hike is expected by the manufacturers in coming months.

However, government’s decision that safeguard duty is not applicable if cargoes are imported at or above MIP has resulted in landed cost of HRC imports from Japan/Korea to be in the range of INR 35,700-36,000/MT.

As the domestic HRC prices have almost come at par with landed cost of imports, quite a few market participants believe that further price hike is not possible in flat steel market.

HR/CR Prices as on 4 Apr’16

Source: SteelMint Research