Indian integrated steel mills have commenced hiking base prices for flat steel products for October deliveries, citing rises in input costs like coking coal and expecting a demand revival, SteelOrbis learned from officials in mills on Tuesday, October 5.
According to the sources, ArcelorMittal Nippon Steel Limited (AMNS) took the lead in hiking flat product prices, followed by JSW Steel Limited and government-run Steel Authority of India Limited (SAIL). The sources said that the price increases effected by these companies range between INR 1,000-1,500/mt ($14-20/mt) for hot rolled coil (HRC) and cold rolled coil (CRC), with other integrated mills to announce new base prices by the end of the current week.
AMNS increased its base price by INR 1,000/mt ($14/mt), takings its HRC base price to INR 68,000-69,000/mt ($915-929/mt) ex-works and its CRC price for current month deliveries to INR 78,000-79,000/mt ($1,049-1,063/mt) ex-works.
SAIL increased its flat product base prices by INR 1,500/mt ($20/mt), with HRC prices reaching INR 67,000-68,000/mt ($902-915/mt) ex-works and CRC prices rising to INR 77,000-78,000/mt ($1,036-1,050/mt) ex-works.
JSW Steel Limited announced a hike in flat product prices by INR 1,200/mt ($16/mt) to INR 67,000-68,000/mt ($902-915/mt) ex-works for HRC and INR 77,000-78,000/mt ($1,036-1,050/mt) ex-works for CRC.
The tradable levels for both HRC and CRC in the Indian spot market were at much lower levels, from INR 1,000/mt and up to INR 4,500/mt lower than the recently announced increased base prices from mills. And their rebound closer to mills’ new prices will depend on demand improvement, sources believe.
An official at Jindal Steel and Power Limited (JSPL) said that its pricing committee would finalize its base price increase over this week. The official, however, said that the October price increase has been ‘conservative’ and in the case of flat products realizations needed to be increased by at least INR 6,000/mt ($80/mt) to compensate for input cost increases.
But whether mills will be able to fully pass on the impact of rising costs to consumers will be determined by how the market reacts in October, the official said.
$1 = INR 74.30