Indian Steel Makers Raise Flat Steel Prices Over Higher Raw Material Cost
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SteelMint recently heard from market participants that in the beginning of the week major Indian steel manufacturers have further raised HRC & CRC prices by INR 500-1000/MT in domestic market.This is the second hike by Indian steel mills in the month of February.
Thus after increase manufacturer's prices of HRC is in range of INR 42,000/MT (ex-Mumbai) and CRC at INR 47,000-47,500MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.
Towards the beginning of the month Indian steelmakers have announced price hike of INR 750-1000/MT in flat steel for Feb deliveries in anticipation of higher steel prices in global market post Chinese New Year holidays.
Why Indian steel mills are constantly raising flat steel prices in domestic market?
1.Surge in raw material prices- Last week Odisha merchant miners namely Serajuddin, KJS Ahluwalia, Kaypee Enterprises, KN Ram, R P Sao have raised iron ore prices for the second time in Feb.Fines prices have moved up by INR 400/MT and lumps by INR 500-600/MT.
Towards the beginning of this month, Odisha merchant miners increased offers in both fines and lumps by INR 200-300/MT(Ex-mines, including Royalty, DMF & NMET).
Meanwhile coking coal offers from Australia also showed uptrend amid tight supply and increased buying.Currently coking coal offers is at USD 208.50/MT Fob Australia.
2. Rise in global HRC export offers- Export offers of HRC from Chinese and CIS nations reported hike post festive holidays in China.Offers from CIS nations increased significantly amid limited supply.Meanwhile Japanese mills also raised HRC offers for India.Thus pushes Indian steelmakers to raise HRC prices in domestic market.
3. Improved buying in domestic market- Few traders commented that improved buying in domestic market has also pushed flat steel prices in upward direction.
After increase, current trade reference prices in traders market for HRC (IS2062) 2.5 mm-8 mm is around INR 42,000/MT (ex-Mumbai) and INR 42,000-42,500 /MT (ex-Delhi) and INR 44,000-45,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.
Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 47,000 /MT (ex-Mumbai) and INR 47,500-48,250/MT (ex-Delhi) .The prices mentioned above are basic prices excluding GST@18% on cash payment basis.
