Indian steel biggies have increased flat steel prices by INR 500-1000/MT for December over high production cost amid rise in iron ore and coking coal offers.
In line with SteelMint’s previous report, major Indian steelmakers have today announced rise in flat steel prices for the month of December on account of surge in raw material cost. Odisha based major major merchant miners have increased prices up to INR 400/MT. India’s largest iron ore producer – NMDC has hiked iron ore prices up to 13% for Dec’17.
Also rising coking coal prices due to congestion in port terminals of Australia results to higher prices of imported coking coal to India. Premium HCC coking coal prices are assessed at USD 211/MT, FoB Australia.These reasons contributed in rising flat products prices in the domestic market.
After revision, manufacturer’s reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 40,000/MT (ex-Chennai) and INR 40,250/MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST @ 18%.
As per SteelMint assessment current reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 44,500-45,000/MT (ex-Chennai) and INR 43,500/MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST @ 18%.
However the question arises that weather increased prices will be able to absorbed in the domestic market or not.
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