Large Indian integrated steel mills have commenced hiking flat product base prices for May deliveries, SteelOrbis has learned from sources among producers.
According to industry insiders, the large mills have increased base prices across flat products by a range of INR 500-1,000/mt ($6-12/mt) with second-tier mills slated to announce revised listed prices over the next few days.
Following the hikes, the listed prices of hot rolled coil (HRC) (2.5-8 mm, IS2062, Gr E250, Br.) from larger mills now stand at around INR 53,000-54,000/mt ($618-630/mt) ex-works. Besides, the new effective rate for cold rolled coil (CRC) (0.9 mm, IS513 CR1) now stands in the range of INR 59,500-61,000/mt ($694-712/mt) ex-works.
Analysts said that base price increases by producers have been prompted by the sharp decline in cheap imports and the declines in inventories at mills.
Going forward, the imminent planned maintenance of JSW Steel Limited’s Dolvi mill is expected to further tighten the supply side and support the price hike, even though there has been strong evidence of resistance from buyers, indicated by falling booking volumes over the past few weeks, the analysts said.
$1 = INR 85.71