Indian steel mills have commenced hiking flat product base prices by up to INR 1,500/mt ($17/mt) for March deliveries, according to trade circles and information available from the market.
Following the hikes, the listed price of hot rolled coil (HRC) for larger integrated mills now stands in the range of INR 49,500-51,000/mt ($570-587/mt), with some small discounts possible, and some mills are targeting even higher than these levels, but in general the market sources said that trade prices and mills’ base prices are now at almost the same level. As reported, the trade price for HRC in Mumbai is at INR 50,250/mt ($575/mt) ex-warehouse after the recent hike.
The sources said that some smaller mills are also expected to announced base price increases over the next few days but by a slightly lower amount in the range of INR 1,000-1,400/mt ($12-16/mt).
Market sources said the base price revisions have been made on the back of planned maintenance works at key mills which may tighten supplies and the expected safeguard duty on imports. However, buyers’ resistance to prices and the generally subdued market activity are expected to moderate any potential price increases at the trade level and, while there will be upward movement in the price line, no sharp spike is expected as industrial demand remains weak.
$1 = INR 86.90