Indian Steel prices expected to go Up..

KATM Exclusive

03 October 2016

Domestic steel producers, including Essar Steel, Jindal Steel & Power, JSW Steel and Steel Authority of India (SAIL), are expected to hike their steel prices by Rs 3000 – 5000 per tonne in October on the back of increased cost of iron ore, coking coal and other raw materials.

Earlier in September, the companies had raised their product prices by Rs 2,500 per tonne taking hot-rolled steel price to Rs 39,000 per tonne and cold-rolled steel to Rs 42,000 per tonne.

Coking coal prices have doubled since beginning of August as Chinese mining supporting the rising demand were shut down and weather disruptions in Australia paused the movement to both Chinese and Indian steel mills. In between, the inquiries and purchasing of coking coal from foreign buyers was at its peak before Chinese National Day Golden Week Holidays starting October 1^st, 2016. This increase in purchasing also allowed the coking coal price rally to steeply rise to the current levels.

Coking coal prices surged from USD 148 to USD 184 per tonne between early August and late September for medium grade coking coal from Australia where as Premium HCC transactions were heard even reaching USD 225 per ton in late September. These prices are expected to remain volatile going ahead, hurting steel companies’ operating costs but at least till the second week of October the coking coal rally is likely to stay calm.

State-owned SAIL is expected to raise prices of hot-rolled coils in the range of Rs 1500 -2500 per ton while HR-plate prices are expected to go up between Rs 1000-1500 per tonne.