Indian steel companies to adopt dual pricing
Indian government has advanced a proposal for dual pricing to enliven steel producers wherein steel used by re-rollers for export purposes can now be priced at international levels. On the other hand, steel used for domestic purposes would continue to be priced at the present levels.
Cold rolled producers, who are exporting around 70% of their
production, would be impacted negatively as they were purchasing hot rolled coil till now at the domestic price, however selling at much higher prices in the international market.
As previously reported by SteelOrbis, Steel Ministry announced that it would not interfere in pricing issue and the pricing is a matter between seller and buyer.
According to reports in the market, henceforth, differential prices would be followed by hot rolled coil producers. However, this situation will assist them to improve their financial position.
The domestic steel prices have been held by the integrated steel producers since March 2004 to meet the requirements of domestic consumers.
Currently, steel prices in the domestic market are much lower than the international prices. Price of HR coil in the local market is around at $570/tons against $800/tons in certain countries.