Soon after Indian domestic mills announced reductions in hot rolled coil (HRC) base prices earlier this month, at least one producer announced a partial rollback, marginally hiking base prices for all deliveries effective from September onwards, SteelOrbis learned from industry sources on Monday, September 12.
The sources said that the partial rollback of earlier price reductions was led by ArcelorMittal Nippon Steel Limited (AMNS), which increased HRC base prices by a marginal INR 500/mt ($6/mt), taking the new September price to INR 56,500/mt ($710/mt) ex-works.
The sources said that AMNS is taking the lead in going ahead with an “unusual” mid-month revision in prices and that it was “highly likely” that other mills would attempt to push up prices in the coming weeks.
According to an official at a private mill, domestic trade prices are almost at the bottom (at INR 55,200-55,500/mt ex-warehouse, according to SteelOrbis’ information) and the market is supported by the rapid increase in stock movements from mills to consumers, providing producers the opportunity to reverse the price cuts earlier in the month.
Indian domestic producers are also taking global cues into their pricing as rising energy costs in the West are pushing up prices even though Indian energy costs have remained relatively stable.
In early September, steel mills led by Steel Authority of India Limited (SAIL) and JSW Steel Limited had announced reductions in HRC base prices in the range of INR 1,500-2,000/mt ($19-25/mt).
$1 = INR 79.60
