Large Indian steel mills led by JSW Steel Limited, Tata Steel Limited and Steel Authority of India Limited (SAIL) have increased flat product base prices by a range of INR 1,000-1,500/mt ($12-18/mt) for the current month, SteelOrbis has learned from company sources.
According to the sources, following the hikes, the effective hot rolled coil (HRC) base prices of JSW Steel Limited work out at INR 54,500/mt ($653/mt) ex-Mumbai and for cold rolled coil (CRC) are at INR 59,800/mt ($716/mt) ex-Mumbai.
SAIL’s HRC base price following the increase stands at INR 55,000/mt ($659/mt) ex-Mumbai and its CRC base price stands at INR 61,500/mt ($737/mt) ex-Mumbai.
Tata Steel’s revised listed price for HRC for the current month works out at INR 55,000/mt ex-Mumbai and its CRC listed price stands at INR 61,000/mt ($731/mt) ex-Mumbai.
Nevertheless, in the HRC market, the trade price levels are still lagging behind by around INR 1,000-1,500/mt, indicating that local demand still lacks strength and that the price hikes are mainly based on the expected easing of supplies.
According to two officials at large private sector mills, the producers pushed ahead with base price increases anticipating lower supplies to the market with at least two or three large mills announcing maintenance shutdowns of plants in the May-June period, and that this would enable the market to absorb higher prices.
$1 = INR 83.50
