After SteelMint reported yesterday that domestic HRC/CRC prices hiked by INR 1,000-1,500/MT, now another flat steel product, plates prices are anticipated to increase by INR 1,500-2,000/MT.
Indian steel majors are yet to announce price hike officially, however, our market sources have confirmed the news of price rise. Current offers for commercial grade (base size 16-20 mm) plates are assessed at INR 24,500-25,000/MT, which would increase to INR 26,500-27,000/MT (ex-plant basis). Price exclude excise of 12.5%.
Indian government announced MIP on 173 steel products including plates on 5 Feb’16. MIP is the price below which imports would not be allowed to India. The MIP fixed for plates is USD 500/MT and valid for 6 months.
“Indian plates prices fell drastically in last one year and thus now expected rise of INR 1,500/MT on plates is a treat for us. However, prices won’t increase randomly in coming days as it depends upon the market how much it is ready to absorb”, quoted a plate trader based in Mumbai.
JSW Steel production slips
JSW Steel’s crude steel production is reported at 9.27 lakh tonne in Jan’16, which is 3% less than crude steel production of 11.2 lakh tonne in Jan’15. However, as per company officials, this decline in 2016 was due to planned shutdown of one of the blast furnace each at all three locations namely Dolvi, Vijaynagar and Salem for capacity increment, which are expected to resume production in Feb’16.
However, the company reported a consolidated loss of INR 9.23 bn for Oct-Dec’15 against profit of INR 3.29 bn in the same period of previous year.
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