Indian private and government mills, while not making any formal announcements on base price, are heard to be quoting prices for flat products which are higher by INR 500-1,000/mt ($6-12/mt) for current month deliveries, sources in trade circles said on Monday, January 8.
The sources said that, unlike most months, mills have not published official base prices but instead are seeking higher prices for current bookings. While producers have not been willing to make official comments, trade circles maintain that seeking higher prices on a case-by-case basis could be intended to avoid concentrated resistance from buyers.
It has been learned that the current prices being sought by mills are in the range of INR 57,500-58,500/mt ($691-703/mt) ex-mill for hot rolled coil (HRC) of 2.5 mm-8.0 mm. Cold rolled coil (CRC), 0.9 mm, prices are being quoted by mills at INR 61,500-63,750/mt ($739-766/mt) ex-mill.
The mills are citing the rise in import coking coal and domestic iron ore prices as a reason for increasing January flat product prices. It has been learned from producers that the landed price of ex-Australia hard coking coal has increased by $6-10/mt to $344/mt CFR Paradip port on the east coast.
