Major Indian steelmakers had increased the HRC prices by INR 2000/MT in the first week of Sep’17 owing to higher raw material cost coupled with boost in global prices.However steep rise in HRC prices is difficult to absorbed by the traders and consumers.
Post GST, Indian steel mills have raised HRC prices by about INR 4,500-5,000/MT.Currently HRC (2.5-8 mm) are assessed in the range of INR 39,250-39,500/MT (ex-Mumbai, GST @ 18% extra) in traders markets. However manufacturer’s HRC prices are around INR 40,000/MT (ex-Mumbai, GST @ 18% extra).
NMDC along with major merchant miners in Odisha raised iron ore prices. Coking coal prices have also witnessed momentum.
Global HRC offers have also strengthened following price hike in domestic market. Chinese HRC export offers have also showed the upside trend since Jul’17 and had recorded the growth of 31% to USD 590/MT FoB China against USD 450/MT in Jul’17.
All these factors forced Indian steel mills to hike offers in beginning of September’17.
Indian government has asked the major steelmakers to keep a check on domestic price rise and keep it below INR 40,000/MT to avoid the exploitation of the consumers.
Steel Secretary Aruna Sharma told “The best range for domestic price is between INR 35,000/MTto INR 40,000/MT. If it goes beyond INR 40,000/MT , then yes, we will be checking. As the steel ministry, we cannot allow Indian steelmakers to exploit the country”.
“So, that is the balance we have to constantly strike. That is very important,” she added.
Defending the protectionist measures “as the right thing to do”, the steel secretary maintained that the government is not against imports.
“What we say is you cant use India as a dumping ground. Thats all. You cant do at a throwaway price,” Sharma warned.
Recently,Indian government has imposed countervailing duty at 18.95% on some flat-rolled stainless products, falling under tariff heading HS Code 7219 or 7220, exported from China to India, for a period of five years, to protect the domestic industry from the onslaughts of the cheap imports from China.
Leave a Reply