fresh in my email from Steelmint Indian Manufacturers Hike...

fresh in my email from Steelmint

Indian Manufacturers Hike Domestic Flat Products Prices

With the start of any month, comes the new price assessment by the domestic steel producers. As per market reports, Indian steel giants have once again increased their flat products prices in the country by INR 500-700/MT, third consecutive hike in past fifteen days.

Current offers for 2.5mm HRC are being heard at INR 38,500-38,700/MT (ex-Mumbai), INR 38500-38,800/MT (ex-Delhi). While 0.9mm CRC prices are assessed at INR 43500-44,000/MT (ex-Mumbai) and INR 44,500-45,000/MT (ex-Delhi). All prices include excise of 12.5%.

“The anticipated increase in flat products prices in first week of October was INR 1,000-1,500/MT. However, given the subdued demand, manufacturers have played safe by increasing prices by just INR 500-700/MT”, quoted one of the trader based in Delhi.

The effective increase in domestic flat products prices in last two months from Aug to Oct is in the range of INR 5,500-6,500/MT.

After the imposition of anti-dumping duty in Aug’16, landed cost of imports have gone up, giving enough scope to the domestic manufacturers to hike their prices.

The landed cost of imports from China after including all the duties for HRC comes in the range of INR 42,000-42,500/MT, for CRC it is at INR 46,000-46,500/MT and for plates it is hovering between INR 46,000-47,000/MT.

In terms of demand, Sept to Feb is usually the peak term for steel demand in India. However, although there is no drastic improvement in current domestic demand, it is far better than what it was during monsoon season, giving scope to Indian manufacturers to increase their prices.