As reported by SteelMint on last Friday, Indian primary steel producers were expected to hike flat products prices this week. And in a recent update on the same, SteelMint has heard that three steel majors, JSW, SAIL and TATA Steel have increased their HRC/CRC prices by INR 750-1,000/MT.
While JSW and Tata Steel have hiked their prices by INR 1,000/MT, SAIL has increased its prices by INR 750/MT. However the prices in traders market are different from what primary producers offer.
As per SteelMint analysis, if the price hike in case of flat products by the manufacturers post MIP is INR 2,000-3,000/MT, the subsequent increase in traders market is INR 5,000-6,000/MT. Thus, after this price hike by manufacturers whether the traders will also raise their offers remains to be seen.
Currently 2.5 mm HRC in the traders market is being offered at INR 34,500-35,000 (ex-Delhi and Mumbai) and at INR 34,700-35,000/MT (ex-Chennai). All prices include excise of 12.5%.
”Given the muted demand, domestic buyers are not showing much interest even at current prices and thus it is unlikely that we will increase prices further”, quoted a trader based in Mumbai.
CRC offers are heard at INR 39,000 (ex-Mumbai and Delhi) and INR 38,500 (ex-Chennai). Prices include excise of 12.5%.
Leave a Reply