Summary – The continuous and steep price rise can be attributed to many reasons, like sharp increase in international prices, healthy demand from export markets in FY21 (April 2020 – March 2021), and an increase in iron ore prices in domestic market.
Story-
Hot-rolled coil (HRC) prices in India’s domestic market have double in the last one year — now priced at 69,000-70,000/mt ($945-959/mt), while it was around Rs35,000-36,000/mt ($480-493/mt) in June 2020.
The continuous and steep price rise can be attributed to many reasons, like sharp increase in international prices, healthy demand from export markets in FY21 (April 2020 – March 2021), and an increase in iron ore prices in domestic market.
International iron ore prices have shot from $96/mt in June 2020 to an all-time high of $233/mt in mid- May 2021 consequently softening to the current level of around $208/mt.
Meanwhile, primary steelmakers in India have raised prices of hot-rolled coil (HRC) and cold-rolled coil (CRC) by Rs3,000-5,000/mt ($41-68/mt) for June deliveries.
State-owned steelmaker Steel Authority of India Ltd (Sail) hiked in both HRC and CRC prices by Rs5,000/mt ($68/mt), while JSW raised HRC prices by Rs3,150/mt ($43/mt) and CRC by Rs4,900/mt ($67/mt) earlier this week. Other large-scale mills have also increased in the same range.
With this hike, prices have touched an all-time high, with primary mills’ HRC at around Rs69,000-69,500/mt ($945-952/mt) and CRC at Rs83,000-83,500/mt ($1,136-1,143/mt) ex-Faridabad. Domestic mills are offering HRC for a little over $1,000/mt FoB India, finding better realisation in export market than in domestic.
($1=Rs73.06)