Some among the leading Indian flat steel producers have announced an increase of around INR 500-1,100/tonne (t) in price over the end-May 2024 levels, which are effective from 1 June 2024. Subsequent to the increase, the list prices of hot-rolled coils (HRCs) (2.5-8mm, IS2062 Gr- E250 BR.) stand at around INR 54,200-55,750/t, while those of cold-rolled coils (CRCs) (0.9mm, IS513 CR 1), at INR 59,800-62,250/t. The above prices are on an ex-Mumbai basis, and exclude GST at 18% along with any price support or discounts.
Other flat steel producers are likely to follow suit.
Raw material prices nudge up in May: The monthly average prices of the prime steel-making ingredient, iron ore, nudged up in May 2024. The monthly average prices of the Odisha iron ore fines (0-10mm, Fe 62%) index increased to INR 5,100/t ex-mine in May 2024 beating INR 4,775/t seen in April 2024.
However, imported hard coking coal (Premium HCC, Australian-origin) increased by a meagre $2/t m-o-m to $258/t CNF Paradip, India in May amid volatile global market sentiments.
Trade-market HRC find support in value-added products: The trade market price levels of value-added coated finished flat steel products increased by INR 500-600/t in May 2024. The trade level prices of GP (0.8mm / CTL, 120gsm, IS277) averaged around INR 64,800/t (up INR 600/t m-o-m) while PPGI (0.5mm / CTL, 90gsm, IS14246) was recorded around INR 73,900/t (up INR 500/t m-o-m) in May 2024.
Moreover, Bulk HRC imports were slightly lower m-o-m in May 2024 at around 309,620 t compared with 4,14,888 t in April according to the bulk vessel line-up data maintained with BigMint.
Meanwhile, the average monthly HRC prices have increased to INR 54,100/t (up INR 1,500/t m-o-m) in May 2024. It can be recalled that these prices dropped for five consecutive months from INR 57,900/t in September 2023 to the low of INR 52,600/t in April 2024. The mentioned prices are on an exy-Mumbai basis, and exclude GST at 18%.
The traders’ market is still slow in the absorption of price increases. However, the improvement in the business-to-customer (B2C) sales of mills is propelling them to go for a price hike in the domestic traders’ market as well. Election results too are to be announced and industry participants, especially mills, are optimistic about a bounce-back in demand from multiple segments ahead of the monsoons. Pre-engineered buildings (PEB), automotive and white goods are being keenly watched by mills for improved demand in the near term, a few industry sources informed.