SteelMint learned from market sources that major Indian steelmakers are planning to raise flat steel prices by INR 500-750/MT (USD 7-11/MT) in domestic market for June. The price announcement is expected to be made on 1st June ‘18. In the month of May, mills announced a price hike of INR 750-1000/MT (USD 11-15). However later in the month, prices in traders market weakened by INR 500-700/MT amid limited trade activities.
Which all factors may result in hike in prices for June ?
1. Hike in iron ore prices by NMDC- India’s largest iron ore miner- NMDC has raised prices in Chhattisgarh and Karnataka e-auctions. NMDC Kumaraswamy has increased iron ore base prices by INR 50/MT in Fines and around INR 100/MT in lumps prices in Karnataka E-auction. On 23rd May, NMDC Chhattisgarh increased prices by INR 100-170/MT.Thus increased raw material cost will show its effect in domestic flat steel prices.
2. Fewer HRC import bookings- Major exporting nations like Japan and South Korea have limited allocations for exports over strong domestic demand. And imports from China are not viable at current levels.
Thus lesser imports along with limited availability pushes Indian steel manufacturers to surge the prices in domestic market.
However this week prices remain stable in domestic market.Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,500/MT (USD 674) (ex-Mumbai), INR 45,750 – 46,000/MT (USD 678-681) (ex-Delhi), INR 46,000/MT (USD 681) (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 51,000-51,500/MT (USD 756-763) (ex-Mumbai),INR 52,500/MT(USD 778) (ex-Delhi) and INR 51,500/MT (USD 763) (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.
It will be interesting to see that whether steel mills hike flat steel prices in June and by what quantum.
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