Indian Domestic Flat Steel Prices Increase in Traders Market

Following last week's announcement by major Indian steel manufacturers on increase domestic prices, this week traders market has observed price increment by INR 750-1000/MT. Also govt. owned PSU - SAIL (Steel Authority of India Limited) has announced the hike in prices up-to INR 1000/MT in Apr'18.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,000/MT (ex-Mumbai), INR 45,000/MT(ex-Delhi),INR 45,500-46,000/MT (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 50,000-50,500/MT (ex-Mumbai), INR 50,800-51,000/MT (ex-Delhi) and INR 51,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

Trade participants are yet to understand the impact of price hike as announcement made by major mills last week was still lacking clarity with some mills postponing the revision to this week. However if sources are to be believed, trade volumes have not shown much improvement.

On 6th Mar'18 SAIL (Steel Authority of India Limited) witnessed a major accident when a fire broke out in transformer of Hot strip mill.The mill was under maintenance shutdown as the repair work has been initiated. Although production has resumed after few days of maintenance, but participants from major markets like Chennai, Delhi mentioned less material availability in markets.

Besides this,higher prices in global flat steel market pushed the Indian manufacturers to raise the prices in domestic market.However still it is uncertain whether the prices shall be accepted in domestic market or not.