Indian domestic steel mills have announced increased flat steel product prices for the third time in March with immediate effect, citing the surge in coking coal prices, SteelOrbis has learned from sources in steel companies.
The third round of base price increases is in a range of INR 1,500-2,000/mt ($20-26/mt) for both hot rolled coil (HRC) and cold rolled coil (CRC), sources at companies said.
Following this HRC price hike, base prices of mills stand in the range of INR 72,000-74,000/mt ($945-971/mt) ex-work, with most of them from big private sector mills at the higher end of the range or even above it.
Effective base prices for CRC, following the latest increase, now stand at INR 79,000-81,000/mt ($1,036-1,063/mt) ex-works.
“We have effected a price hike because the price of imported coking coal was $300/mt a month ago and now the landed price is up to $700/mt. These prices are unsustainable without increases in finished steel prices,” an official at a private steel mill said.
An official at another steel mill said, “There is every possibility of more base price increases in April. By the end of next month, base HRC prices can touch INR 80,000/mt ($1,050/mt), a historical high.”
