India’s primary steelmakers have raised steel prices by Rs1,500-3,000/mt ($21-41/mt) for both, long and flat products, for January deliveries, according to Davis Index’s sources.
State-owned company Steel Authority of India Limited (Sail) has hiked flat product prices by around Rs3,000/mt ($41/mt) and long products by Rs1,000-1,700/mt ($14-23/mt) for the month.
JSW Steel raised rebar prices by Rs2,400/mt ($33/mt), wire rod by Rs3,000/mt ($41/mt) and HRC by Rs1,500/mt ($31/mt).
Jindal Steel and Power Limited (JSPL) hiked prices of long products by Rs1,000/mt ($14/mt).
Steel companies may revise prices further this month depending on the price trends in the international market and rising iron ore prices.
With latest price hike, primary mills’ rebar will cost around Rs54,500-55,000/mt ($746-753/mt) ex-Mumbai and HRC prices around Rs54,000-54,500/mt ($740-746/mt) ex -Delhi.
India’s primary steel producers are witnessing strong demand from across sectors, especially government-funded infra projects, which will support prices and maintain uptrend in Q4 FY21.
Last week, the Indian Steel Association (ISA) wrote to Prime Minsters’ Office (PMO) to justify the price hike, after receiving flak from a Union Minister.
Reacting to the steel industry’s demand for a ban on iron ore exports, miners urged the government to withdraw import and other duties meant for shielding the domestic steel industry which, they believe, has indulged in ‘profiteering’ taking undue advantage of the current market situation.
The Federation of Indian Mineral Industries (FIMI), in its letter to the PMO on December 31, said the ISA letter was “obfuscating the whole issue and justifying the unjustifiable increase in steel prices”.