SteelMint: India Steel Composite Index rises as mills raise list prices

SteelMint's India Steel Composite Index rose further by 2%, w-o-w, with the long and flat steel indices rising by the same margin. Major steel producers in both the longs and flat steel product segments have taken a hike in their list prices for end-Jan'22 sales in the domestic market.

The index was assessed at 159.4 on 28 Jan, up 2% on the week, and 3% on a monthly basis.

The Index is backed by robust calculation methodologies and is derived from the long steel and flat steel composite indices. The Index serves as a benchmark for end-users, EPC contractors, and manufacturers in the iron and steel industry to settle contracts or understand the market cost of physical supply of commodities such as rebar, wire rod, structurals, HRC, CRC, plates as well as galvanised plates.

• • The Composite Index is assessed on a weekly basis: every Friday at 18:30 IST, as per the weighted average prices based on manufacturing capacity and production.
    
    
  • SteelMint considers the Composite Index with the base year being 3 Jan'20 (financial year 2019-2020) and the base value as 100.
    
    
  • The Composite Index doesn't give the absolute price.
    
    
  • The Indian steel industry is broadly classified into the BF-BOF and the electric/induction furnace routes. Keeping this broad classification in view, SteelMint proposes to release the Composite Index by considering both production routes by manufacturing capacity and the production weighted method to compute the index for India. For details click to view the methodology document.
    
    
  
  
  

The flat steel index stood at 168.4, rising from 165.7 a week ago. Mills have increased HRC and CRC list prices by around INR 500-750/t earlier this week for end-Jan sales. This has led to higher prices being quoted in the trader's market. The market prices of most flat steel products increased this week barring pre-painted galvanised iron (PPGI) and galvalume which remain unchanged.

Robust export bookings for Feb amid rising raw material prices have pushed mills to go ahead with a price hike after having rolled over the list prices of flat products for early-Jan sales.

The long steel index increased to 150.8 this week against 147.4 a week back. Market sentiments have improved with a pick up in trading activities. A couple of private blast furnace (BF) route steel producers increased their list prices by up to INR 1,500-2,000/t this week. The induction furnace-based long steel market also witnessed an uptrend.