Steel makers raise prices by up to Rs 4,500 per tonne

By Surya Sarathi Ray10 days ago

Despite anaemic domestic demand primarily due to lockdown and restrictions on mobility, the price hike is mainly to align with the international prices, which have gone up continually in recent times thanks to China limiting its exports.

Roy said the ongoing second wave of the coronavirus makes demand outlook somewhat uncertain in the first half of FY22 while exports remain a viable alternative available to leading steel makers in India.

Steel mills have raised prices by up to Rs 4,500 per tonne from the beginning of the month taking the benchmark hot rolled coil (HRC) price in the Mumbai market to a record high of nearly Rs 68,000 per tonne.

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Despite anaemic domestic demand primarily due to lockdown and restrictions on mobility, the price hike is mainly to align with the international prices, which have gone up continually in recent times thanks to China limiting its exports.

With Japan and CIS, HRC export prices crossing $1000/tonne, landed prices into India now stand between Rs 80,000 and Rs 83,000/tonne with little availability. Indian mills are quoting above $970/tonne for their exports which translates into mill level realisations of Rs 71,000/tonne. Trade level domestic HRC prices are near Rs 65,000/tonne, J P Morgan said in an April 28 note.

It said Indian mills hiked domestic spot HRC prices by Rs 7,000/tonne in April and saw a strong possibility of mills hiking domestic HRC prices by up to Rs 7,000/tonne, spread over May and June due to a very large gap between mill level domestic and market prices.

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