A few Indian steel mills led by ArcelorMittal Nippon Steel Limited (AMNS) and state-run Steel Authority of India Limited (SAIL) have started increasing hot rolled coil (HRC) base prices for the second time in March, SteelOrbis has learned from industry circles.
They said that both mills have hiked HRC base prices by INR 4,000/mt ($52/mt), following which the base price for the private sector mill is estimated to be effective at INR 72,000/mt ($940/mt) ex-works at the lowest and that of SAIL at INR 70,500/mt ($920/mt) ex-works.
Sources said that there is a distinct possibility that other integrated mills will also go in for a second base price hike in March as producers are claiming that the increase earlier in the month meant that they still had not compensated for a large part of the surge in their input costs, especially energy and coking coal costs.
“Crude oil prices before the Russian invasion of Ukraine was at $90/barrel and are rising to $129/barrel now and are projected to touch $180/barrel in the short term. Rising freight rates are impacting all products, including steel. Rapid increases in finished steel prices are the new normal,” an official at a private steel mill said.
$1 = INR 76.60
