India’s ArcelorMittal Nippon Steel Limited (AMNS) had decided to hike local hot rolled coil (HRC) prices by INR 4,000-5,000/mt ($54-68/mt), industry sources told SteelOrbis on Monday, May 3. The higher prices will be effective for current month bookings and, though the steel mill has not yet officially announced the base price, quick calculations indicate that the new base price has risen to INR 66,000-67,000/mt ($892-905/mt) ex-works.
Market analysts and industry sources have been forecasting that local producers would have headroom to increase HRC base prices by INR 6,000-7,000/mt ($81-95/mt) over the May-June period amid the impact of the removal of the Chinese export rebate on finished steel prices and the overall global uptrend.
According to sources, AMNS is the first domestic producer to announce a price increase for current month deliveries. Other mills are expected to increase prices too in the next few days. However, a section of the market thinks that government-run steel mills will be cautious as regards increasing base prices to avoid coming under criticism for seeking to improve realizations at a time when overall the economic growth outlook is turning negative.
