SAIL Increases Flat Steel Prices by INR 700/MT ($ 11)

20% provisional Safeguard duty makes imports unviable helping Indian flat steel manufacturers to increase domestic prices.

In a recent move post Safeguard duty announcement on 15 Sep’15, SAIL along with other flat steel manufacturers increased domestic flat steel (HRC, CRC, and MS Plates) prices by INR 700/MT (USD 11).

Current offers for 2.5mm (IS2062 grade) HRC is assessed in the range of INR 33,500-34,000/MT (ex-Delhi), INR 33,000/MT (ex-Chennai and Mumbai) and INR 33,500/MT (ex-Kolkata). All prices include excise of 12.50%.

“HRC prices have come down by INR 10,000/MT in last one year. This increase in rate will be welcome move for domestic HRC players whose margins have squeezed due to imports”, said a HRC trader based in Delhi.

Domestic prices for 0.9 mm CRC is assessed at INR 36,800/MT (ex-Mumbai), INR 37,500 (ex-Chennai), INR 38,000/MT (ex-Kolkata), and INR 38,500 (ex-Delhi). All prices include excise of 12.50%.

Imports not viable

Imports have become unviable post 20% provisional safeguard duty. Currently 2.5 mm (SS 400 commercial grade) HRC is being offered in the range of USD 290-295/MT from China and USD 345-350/MT from Korea.

0.9 mm CRC offers from China is assessed at USD 340/MT and in the range of USD 450-460/MT from Korea.

All HRC and CRC import offers are on CNF India basis.

Increase in railway freight

Every year Indian railways charge extra freight on all commodities during peak season which is known as Busy Season Charge. This freight hike is applicable for ‘April-June’ and ‘Oct-March’.

Apart from hike of INR700/MT on base price, HRC rates are anticipated to increase further depending upon the increase in rail freight.

Domestic HRC and CRC prices as on 3 Oct’15

Prices in INR/MT
Source: SteelMint Research