India: Steel Mills Raise Flat Steel Price by INR 1000-1200/MT (USD 14-17)

India's major steel producers have raised flat steel prices by INR 1000-1250/MT (USD 14-18) for Dec deliveries owing to better demand, high export prices and improved buying activities in the domestic market. Prior this,major steel companies raised HRC prices by around INR 500-1000/MT (USD 14-17) in Nov '19.

After increase, company's effective prices for HRC (2.5-8mm,IS2062) is hovering around INR 35,500-35,750/MT (ex-Mumbai) and CRC prices (0.9mm IS 513 GR) stood around INR 39,500- 40,000/MT (ex-Mumbai).

Thus active export bookings to Vietnam and easing off inventories to overseas markets in the last few months has motivated steel mills to raise the prices in domestic market. Meanwhile absence of steel imports, improved sentiments in domestic market with resumption of buying activities also escalated the prices in upward direction.

Meanwhile companies also raised HRC export offers further following surge in overseas prices. Current HRC export offers is around USD 470-475/MT CFR basis which was around USD 465-470/Mt CFR last week. In a month's time Indian HRC export offers moved up by USD 20/MT

However constant hike by major steel mills shall be absorbed in the domestic market or not still remains a question since demand from auto sector and infrastructure sector continue to remain sluggish.