Improved domestic demand and supply-demand mismatch over lesser inventories in month of April may result in another hike in flat steel prices next month.
SteelMint learned from trade sources that Indian steel makers are planning to hike flat steel prices by INR 500-1000/MT again in the next month. In April, steel mills have raised the prices of flat products by INR 750-1000/MT.
Flat steel prices have shown spurt in domestic market in last couple of months amid improved demand and supply shortage in fewer regions.
Meanwhile lesser import bookings from major nations like South Korea and Japan and lower inventories has impacted the supply of material in domestic market.This may push flat steel prices further next month.
However this week market sentiments remain stable. Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,500/MT (ex-Mumbai), INR 45,500/MT(ex-Delhi),INR 45,500-46,000/MT (ex-Chennai). The prices mentioned above are basic prices excluding GST @ 18%.
Trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 50,500-51,000/MT (ex-Mumbai), INR 51,500/MT (ex-Delhi) and INR 51,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.
However, it will be skeptical to ascertain whether the increased prices will sustain in the domestic market.
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