During the past week the Indian flat steel market continued the upward trend seen in previous weeks. After Indian steelmakers raised their domestic flat steel offers by INR 500-1,000/mt ($11-22/mt), domestic hot rolled coil (HRC) prices have settled at INR 38,500-39,000/mt ($850-861/mt), depending on the regions. Improved flat steel demand as compared to previous months has led Indian steel producers to focus on their domestic market. Meanwhile, local traders' HRC offers are currently standing at INR 37,500-40,000/mt ($828-883/mt) ex-warehouse.
On the import side, the Indian flat steel market is now eyeing Chinese offers. Although Indian buyers have been sending their counterbids to both Chinese steelmakers and traders, it seems difficult for these parties to agree on a price range for now. The counterbids of Indian buyers have remained INR 2,000-2,500/mt ($44-55/mt) below the ex-China offers.
In addition, offers from Ukrainian and Russian steel producers, which have lately increased their prices for March production, are above the price idea of Indian buyers, considering lead times. Thus, local Indian buyers have eventually turned to their domestic market for purchases.
On the export side, Indian HRC export offers are currently standing at $800-820/mt FOB. European flat steel buyers, on the other hand, who were active in previous weeks, are observed to be quiet this week. Meanwhile, ex-India St37 grade steel plate offers to the Middle East are at $950/mt CFR Dubai.
Generally speaking, the flat steel price hikes in India are closely linked to the rising trend in the world steel markets and have partly arisen from producers' attempts to maintain their margins amid increased raw material costs. On the other hand, as they seek to replenish their low inventories, buyers are looking for workable price levels.
$1 = INR 45.324