Indian Steel Mills Raise Flat Steel Prices Upto INR 1000/MT (USD 14) for June
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In conversation with market sources, SteelMint learned that major Indian steel manufacturers have raised HRC & CRC prices by up to INR 1000/MT (USD 14) for June deliveries in the back of increased raw material cost.Continuous increase in iron ore prices both in domestic and global market resulted to hike in flat steel prices in June.
Thus JSW steel hike flat steel prices by INR 750-1000/MT in June.Effective price after increase for HRC (2.5-8mm, IS2062) is hovering at INR 42,000-42,500/MT (ex-Mumbai).Prices mentioned above are basic and extra GST@ 18% will be applicable.
Whereas, prices of CRC (0.9mm, IS513GR) is around INR 47,250/MT (ex-Mumbai).Prices mentioned above are basic and extra GST@ 18% will be applicable.
Meanwhile govt owned SAIL (Steel Authority of India Ltd) and Essar steel have also increased HRC & CRC prices by INR 1000/MT in June.However Tata steel will announce revision in flat steel prices shortly.
Higher raw material cost- Odisha based major merchant miners like Rungta Mines, Serajuddin, KJS have increased lump offers up by INR 300/MT and fines by INR 200/MT.Meanwhile NMDC has announced an increase of INR 250/MT from its Chhattisgarh mines and in floor prices for upcoming Karnataka e-auctions by around INR 250/MT.
Also the price hike in domestic is attributed to increase in global iron ore price, which are hovering around five years high. Spot iron ore fines Fe 62% index has picked up to USD 108/MT, CFR China.However the same decline to USD 100/MT CFR China towards the end of last week
Meanwhile seaborne coking coal (Premium HCC) prices went up to USD 210/MT FoB Australia in the beginning of May'19 which was at USD 201/MT in beginning of Apr'19. However last week prices witnessed decline and stood at USD 203/MT FoB basis.
Thus higher raw material prices will in turn raises flat steel prices and the same will be pass on to end users in domestic market.
However on other hand trade prices of HRC continued to remain under pressure over dull trades and cheaper imports arriving to India from Japan and Korea.
Thus recent price hike in domestic flat steel market shall be absorbed or not still remains a question amid poor sales in auto sector,slowdown in construction and infrastructure activities and approaching monsoon season.
