India: JSW Steel Hikes Finished Steel Price for Jan'20
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Hike in raw material prices, improved demand in trade segment and decent export bookings have collectively resulted to hike in Indian finished steel prices for Jan'20.
India's JSW Steel has announced price hike of INR 1,700-1,800/MT in HRC; INR 2,200-2,300/MT in CRC, sources reported to SteelMint. After hike company's effective prices for HRC (2.5-8mm,IS2062) is hovering around INR 37,200-37,300/MT (ex-Mumbai) and CRC prices (0.9mm IS 513 GR) stands at around INR 42,200-42,300/MT (ex-Mumbai).Prices mentioned above are basic and extra GST @18% is applicable.
The company has also raised long steel prices. Rebar prices have increased by INR 1,600-1,700/MT and that of wire rod around INR 1,000/MT. After hike, rebar offers are around INR 37,700-37,800/MT (ex-Mumbai, GST extra) and for wire rod around INR 37,600/MT (ex-Mumbai, GST extra).
Other major Indian mills have also raised offers. JSPL and recently acquired Arcelor Mittal Nippon Steel (AM/NS India) have raised domestic flat steel prices. After increase, offers from AM/NS India are reported around for HRC (2.5-8mm,IS2062) is hovering around INR 37,000-37,500/MT (ex-Mumbai) and CRC prices (0.9mm IS 513 GR) stood around INR 43,000/MT (ex-Mumbai). Prices mentioned above are basic and extra GST @18% is applicable. SAIL, Tata Steel are also expected to announce price hike shortly.
Indian mills raised flat steel prices due to the following reasons:
1.Increase in raw material prices - India's biggest iron ore producer NMDC, has announced a hike in its iron ore fines prices and lumps by INR 200/MT and in DR-CLO price by INR 230/MT and ROM by INR 190/MT yesterday.This in turn shall elevate the steel prices in the domestic market in Jan '20.
2.Hike in Indian HRC export offers - Major Indian steel producers have raised HRC export offers to Vietnam at USD 520/MT CFR Vietnam in line with global prices and increased buying from Vietnam buyers.Last offers was in range of USD 495-500/MT CFR basis.Also buyers in Vietnam are expecting supply constraints owing to maintenance shutdown in Formosa Ha Tinh from 30th Dec to 17th Jan'19.Thus increased dependency on imports shall push Indian HRC export offers on higher side and provide confidence to mills to raise HRC prices in the domestic market.
3.Absence of imports to India - Indian stockists kept themselves away from importing material from FTA nations owing to anti dumping duty. Also dull demand in Sep and Oct month resulted to lower import bookings in India.As per data maintained with SteelMint,Indian flat steel imports in Nov'19 stood at 0.26 MnT decline by 32% M-o-M as compared to 0.38 MnT in Oct' 19.Thus Indian steel mills have enough room to raise HRC prices in domestic market.
4.Surge in domestic HRC prices in trade segment - Traders have already raised HRC prices in domestic market ahead of price hike announcement by Indian mills in Jan'20.Thus price of domestic HRC (2.5-8mm, IS 2062) was at INR 35,800/MT (ex-Mumbai) in the beginning of Dec'19 which surged to INR 37,250/MT (Ex-Mumbai) towards the end of Dec '19. Prices mentioned above are basic and extra GST @18% is applicable.
