Public CompanyFlat steel to cost Rs 1,500/tn more from January 1
The prices of flat steel — used in automobile and consumer durables — are set to increase by Rs 700-1,500 a tonne from January 1, after showing a soft-to-downward trend in the last five months.
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Primary steel producers said prices would increase by 3-4 per cent from January due to rising demand. Long-product prices have already been increased. Major producers Steel Authority of India (SAIL) and Tata Steel have raised prices by Rs 2,000 a tonne with immediate effect.
Steel prices across the globe are showing signs of recovery. Japan’s JFE Steel plans to raise prices in the Asian market. The company has signed contracts with customers in Malaysia at 15 per cent higher prices for supplies in the first quarter.
However, industry sources were concerned that the global economic recovery was still in the making. While the US and emerging economies were getting back on track, parts of North America and Europe were lagging.
Domestic steel producers said though prices would be increased in January, it was difficult to say if prices would be raised on month-on-month basis due to rising imports. “Even China is exporting to India,” they said.
Flat steel imports, led by hot-rolled (HR) products, went up in November. Total imports jumped 53 per cent year-on-year in November to 506,000 tonnes. The import of HR products went up by 82 per cent to 363,000 tonnes.
The fall in export demand since August allowed China to export over 32 per cent of the total HR products, compared to 3-4 per cent in earlier months, said sources.
Total flat steel imports have risen 38 per cent during the current financial year. During April-November, flat imports stood at four million tonnes against 2.2 million tonnes in the same period last year.
Steel producers said, HR plate for imports was being quoted at $598 a tonne compared with $792 in the international market.
Demand surge and global recovery apart, the steel industry may face pricing pressure as raw material prices are likely to rise by 10-30 per cent. While iron ore contracts were sealed at $80 a tonne, currently the spot price is ruling at $126. Coking coal prices have risen to $186 since May, while contract prices in April were at $129.