Indian integrated steel mills led by Jindal Steel and Power Limited (JSPL) have ushered in the New Year announcing that hot rolled coil (HRC) prices will be progressively increased during the current month, with the first round of the hike already seen, SteelOrbis has learned from traders and officials at steel mills on Tuesday, January 5.
The traders and steel mill officials said that in the first tranche steel mills led by JSPL have increased HRC base prices by around INR 1,500/mt ($21/mt) to INR 52,500-53,500/mt ($719-732/mt) ex-works for all deliveries post January 3.
At least one official at a private integrated steel mill said that HRC base price hikes could be as much as INR 6,000/mt ($82/mt) during the current month, but this would be considered after producers have completed the first round of their targeted price increase of INR 2,400/mt ($33/mt) in the coming weeks.
“The market is good for price increases. The first round of price increases is already effective. Prices, however, can stabilize if state-run iron ore miner NMDC Limited keeps its prices at the same level,” V R Sharma, managing director of JSPL said.
It may be noted that the Ministry of Steel has advised NMDC Limited to cut prices of iron ore to cool the rising raw material price increases faced by domestic steel mills, but sources in the mining company said that any pricing decision in January would be based on an “assessment of market conditions and commercial considerations”.
NMDC increased iron ore prices for domestic sales by 60 percent during 2020.
$1 = INR 73.00
