Local Indian hot rolled coil (HRC) prices have been pushed up as select private sector steel mills have increased base prices for the second time in the current month, riding on forecasts that lower production in the current quarter would support price levels despite falling trading activity and demand, SteelOrbis learned from trade and industry circles on Monday, May 24.
The sources said that JSW Steel Limited hiked base prices for a second time in May - by INR 1,750/mt ($24/mt) up to INR 66,750/mt ($916/mt) ex-works. In addition, ArcelorMittal Nippon Steel (AMNS) is the second mill to increase base prices, by INR 1,000/mt ($14/mt), taking its effective listed price to INR 68,000/mt ($934/mt) ex-works or slightly above, the sources said.
However, it has been pointed out that most other steel mills including government-run producers have maintained their base prices mainly in the range of INR 65,000-66,000/mt ($892-906/mt) ex-works, deciding to hold the price line at least until the end of the current month and then to review market conditions before their respective pricing committees meet to decide June prices.
As a result, the general range of local Indian HRC prices from major mills has risen to INR 65,000-68,000/mt ($892-934/mt) ex-works.
“Domestic steel mills are taking a big and aggressive call on pricing. They are assessing that a slight fall in aggregate production and robust exports to the key Asian and the EU markets will offset any pressures from low demand on prices,” a steel sector analyst from a Mumbai-based rating agency said.
“With the landed price of imported HRC still well above the $1,000/mt mark, local producers have headroom to push up prices further in June. The high international prices will also ensure that any cut in import duty being considered by the government will not increase pressures from import competition on local prices either,” he added.
$1 = INR 72.83