India: Major Steel Mills Hike HRC Offers for April

Mills have raised prices by INR 500/MT (USD 7) following recent hike in imported HRC offers scheduled maintenance at a major mill and decent export bookings in March.

SteelMint recently learned from market participants that few major Indian steel mills like JSW Steel and Essar Steel have raised domestic HRC offers by around INR 500/MT (USD 7) for April deliveries.

After increase JSW Steel's effective price of HRC (2.5-8mm, IS2062) is in range of INR 43,000-43,250/MT(ex-Mumbai). Revised offers of Essar Steel is at INR 43,250/MT (ex-Mumbai). Other steel mills are also likely to follow the suit and raise offers by same quantum.

Whereas prices of CRC (0.9mm, IS513GR) of major mills is in range of INR 48,000-48,000/MT (ex-Mumbai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Hike in imported HRC offers - Major Indian steel mills have raised domestic HRC prices following hike in imported HRC offers from major exporting nations like Japan and Korea. Japanese and Korean mills have increased imported HRC offers by USD 20/MT for April shipments and are offering at INR 580-590/MT CFR India against last month's offer of USD 570-580/MT, CFR India.

Decent export bookings made in March - If market sources are to be believed major Indian steel mills have booked decent quantities for export in the month of March. Each of major Indian mills were learned to have booked around and over 100,000 MT HRC for export.

Scheduled maintenance at one of the major mills - As per sources, annual maintenance is planned at Tata Steel's Jamshedpur plant and Bhushan Steel, which will keep supply tight in near term.

All these factors have collectively supported flat steel prices in domestic market.