Large Indian steel mills have commenced hiking flat product base prices for April deliveries riding on the back of the tightening of supplies and the anticipated safeguard duty on imports, SteelOrbis learned from trade and industry circles on Thursday, April 3.
The sources said that at least three of the largest domestic integrated steel mills have increased flat product base prices by a range of INR 2,000-2,500/mt ($23-29/mt) for April sales, while second-tier mills are expected to announce similar hikes in list prices over the next few days.
Following the price hike announcement, the effective listed prices of these mills now stand at: INR 52,000-53,000/mt ($608-620/mt) for hot rolled coil HRC (2.5-8 mm, IS2062, Gr E250, Br.), and in the range of INR 59,000-60,000/mt ($655-702/mt) for cold rolled coil CRC (0.9 mm)
According to trade circles, the base price revisions announced so far have been very aggressive as the market was expecting an increase in the range of INR 1,000-1,500/mt ($12-18/mt).
At the moment, HRC base prices are in line with the trade prices reported early this week.
These market participants have predicted that resistance from buyers will emerge over the next few days as the aggressive increase comes at a time of uncertainties regarding trade flows following US tariffs and reciprocal counter-moves and India’s higher risks of imports amid diversions of volumes across supply chains.