India’s primary steel mills are expected to raise steel prices early February by Rs1,000/mt ($14/mt) due to higher input costs and a shortage of finished steel in the domestic market.
Presently, primary mills rebar prices are at Rs38,500-39,500/mt ($540.7-554.7/mt), ex-works Mumbai, depending on the mill.
Steel Authority of India Limited (Sail) raised rebar prices by Rs500/mt twice in January. Other primary mills have also hiked the price of rebar by Rs1,000-Rs1,500/mt.
Prices of iron-ore and coking coal are also holding firm. International iron ore prices are now at $95/mt, 62% cfr China, up by $92/mt from December. Premium low vol coking coal prices are at $152/mt fob Australia, up by $136/mt from December.
The shortage points to healthy sales volumes of finished steel in December. The upcoming Union Budget (Feb 1, 2020), is expected to boost the price of steel with the announcement of new infrastructure projects.
Domestic iron ore prices
India’s state-owned NMDC hiked iron ore price twice in January. NMDC raised iron ore prices by Rs350-400/mt on Jan 19. Earlier on Jan 2, it increased prices by Rs200/mt. Iron ore fines (64pc, -10mm) and lump ore (65.5pc, 6-40mm) is priced at Rs. 2,910/mt and Rs. 3,200/mt, respectively.
($1= Rs71.2)