Major Indian steelmakers planning to raise flat steel prices by around INR 1000/MT amid higher raw material cost combined with improved bookings in domestic market.
In line with SteelMint’s last week report we learned from market sources that major mills are planning to hike prices by around INR 1000/MT (USD 14). However official announcement will be made in first week of September.
However this week domestic prices remain largely stable.Few other regions like Ahemdabad , Kolkata and Ludhiana region witness uptrend in prices by INR 500/MT on improved demand.
Thus current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 45,500/MT (ex-Mumbai),INR 45,500/MT(ex-Delhi) and INR 45,500-46,000/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 50,000-51,000/MT (ex-Mumbai),INR 50,500-51,500/MT (ex-Delhi) and INR 50,500-51,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.
Mills are increasing prices on the backdrop of higher raw material prices like iron ore. Odisha based merchant miners have raised iron ore prices by INR 300/MT last week and they are planning to raise prices further in domestic market.
Depreciating currency turns import costlier – Deprecation of Indian currency rupee against USD has resulted to higher prices of HRC imports to India.
A couple of weeks back Indian importer booked around 20,000 MT HRC from Japan in the range of USD 640-645/MT CFR basis.Thus landed cost in INR is assessed around INR 47,362/MT (ex-Mumbai) (considering exchange rate of 70.69).
However domestic HRC is hovering around USD 45,500/MT (ex-Mumbai). Thus the gap between landed cost of imports and domestic HRC prices is still higher which gives enough scope to Indian steel manufacturers to increase the prices in coming month.
Meanwhile Indian HRC export offers are hovering around USD 580/MT FoB basis and few offers from a major mill was also heard around USD 600/MT, FoB. Although not significant bookings were reported as mills were focussing more on domestic sales.
Previously in the beginning of the August,few Indian mills cut HRC CRC prices by INR 500-750/MT and Indian govt owned SAIL had roll over flat steel prices for the month of August amid slow demand and prevailing monsoons.