India: Primary mills raise HRC-CRC list prices by INR 500-700/t
Indian steel majors have increased the list prices of hot rolled coils (HRCs) and cold rolled coils (CRCs) by INR 500-750/t ($7-10/t) for end -Jan’22 sales. The...
Indian steel majors have increased the list prices of hot rolled coils (HRCs) and cold rolled coils (CRCs) by INR 500-750/t ($7-10/t) for end -Jan'22 sales. The price hike was implemented in the past couple of days, SteelMint learned from reliable market sources.
The increase in the cost of production along with the rising prices of raw materials such as coking coal and iron ore, have made mills increase prices, after having rolled over the same for early Jan'22 sales.
Factors behind the price increase
HRC export index spikes by $58/t w-o-w: SteelMint's India HRC (SAE1006) export index spiked by $58/t to $780/t FOB east coast w-o-w from $722/t FOB. This is mainly because the mills are decently booked in terms of export offers for Feb'22 and are eyeing higher prices for Mar'22 shipments.
Raw material costs rise: The other major factor behind the price hike is the rise in raw material costs. For instance, the weekly average price of premium hard coking coal (HCC, Australian origin) has been on a gradual rise to $464/t (up to 27 Jan'22) CFR Paradip, India from levels of around $380/t at the beginning of Jan'22.
Furthermore, prices have been on a continuous increase since early Dec'21 levels of around $336/t CFR Paradip.
"The market sentiments are picking up gradually, yet the buying pattern remains slow and need-based," distribution-level sources informed SteelMint.
Outlook
Robust export bookings and rising international prices of both raw materials and finished flat steel products might impel mills to go for another price hike for Feb'22 deliveries in the upcoming week.