Indian integrated steel mills have announced significant cuts in flat product base prices for December deliveries in the face of sluggish domestic demand, rising competition from imports, and exports yet to gain momentum as expected, SteelOrbis learned from trade sources on Tuesday, December 6.
The sources said that the reduction in mills’ prices averages around INR 3,000/mt ($37/mt) for hot rolled coils (HRC) and up to INR 5,000/mt ($61/mt) for cold rolled coils (CRC).
Following the reduction, the effective HRC listed price for JSW Steel Limited stands at INR 54,000/mt ($660/mt) and its prices for CRC stand at INR 62,000/mt ($758/mt) on ex-works basis.
The HRC price from ArcelorMittal Nippon Steel Limited (AMNS) has been reported at INR 54,250/mt ($666/mt) and its CRC price at INR 61,250/mt ($749/mt).
Tata Steel’s listed price for HRC has been reported at INR 55,000/mt ($672/mt) and its CRC price at INR 62,500/mt ($764/mt). Other mills have announced base prices near these levels.
As a result, the HRC base price in the Indian market has settled at INR 54,000-55,000/mt ($660-672/mt) ex-works. So, the latest trade prices in the spot market, which are INR 600-800/mt ($7-10/mt) above the new base prices, have room for a further decline in the coming weeks.
$1 = INR 81.80