Steel prices in India may increase further

Steel prices in India may increase further

Following the recent price increases effected by Indian steel producers such as Tata Iron and Steel Corp (TISCO) and Jindal Stainless Steel, certain analysts are of the opinion that the prices may be increased further as the new prices are still lower than international prices. As reported by SteelOrbis early this week, Indian producers increased the price of hot rolled steel products by Rupees 500-1'000 ($10.8-21.6) on the ground that their prices are lower than international market prices. Certain analysts claim that the recent price increase has been effected to test market reaction to the increase before a sharp increase is effected, adding that the actual increases will be effected in the coming months. The price of hot rolled steel products in India ranges between Rupees 26'000-29'000 ($559-624) per ton, depending on the producer. However, when the fact that the price of the same material in Europe is around $630/mt FOB and in the US around $740 is taken into account, it is apparent that despite the recent increases, the prices in India are still lower than the prices in international markets.