SAIL Increases Domestic Flat Steel Prices by INR 700/MT- Sources

SAIL-India's second largest steelmaker has raised the flat steel prices by INR 700/MT w.e.f today (i.e. 17 Jan'18).Market sources reported that hike in domestic flat steel prices is due to supply crunch prevailing in the domestic market.

A steel manufacturer based in Chennai mentioned that "Domestic flat steel prices are expected to to show uptrend in prices as the last quarter has arrived when all the backlog orders need to be cleared .Thus increased number of bookings amid supply crunch has lead to further rise in domestic flat steel prices".

Besides this, anticipation of further increase in flat steel prices in the month of February has pushed the traders to make advance bookings with the motive to restock the inventories before the price rise.

Also Indian steelmakers are currently focusing on domestic market amid fewer export bookings can be attributed one of the reasons in rising flat steel prices.

As per sources, SAIL's HRC prices after today's hike is around INR 43,700/MT (ex-Chennai) and INR 42,600-43,000/MT (ex-Mumbai). The prices mentioned above are basic prices excluding GST @ 18%.

However, currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 42,500-43,000/MT (ex-Mumbai), INR 42,500-43,000/MT (ex-Delhi),INR 43,000/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 46,000-46,500/MT (ex-Mumbai) INR 47,000-47,500/MT (ex-Delhi) and INR 46,500-47,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.