India’s primary steel mills have raised HRC and steel wire rod prices by a maximum of Rs2,000/mt ($27.28/mt) for October as demand from the automotive and other down-stream sectors seems to be recovering. The price rise was also supported by supply crunch and increased iron ore prices in the international market. Rebar prices, however, have stayed largely unchanged.
State-owned Sail has raised HRC prices by Rs2,000/mt, RINL has increased long steel products by Rs1,000-1,200/mt, including wire rod. RINL has, however, increased rebar prices only by Rs200/mt. Other mills Davis Index spoke to, including, JSW Steel have also raised HRC and wire rod prices but rolled over their rebar prices.
After the revision, HRC prices were at Rs43,000-43,200/mt ($586-590/mt), rebar at Rs38,700-39,000/mt ($527-533/mt) and wire rod at 42,500-43,000/mt ($580- 586/mt) ex-works Mumbai.
Indian primary mills have been increasing HRC prices since mid-July since domestic consumption of flat steel started strengthening. Prices have increased by 23pc to around Rs43,200/mt on Oct 5.
State-owned miner, NMDC also raised iron ore prices for lumps and fines by 33-37pc in the period which also drove mills to raise prices.
Also, international iron ore remains elevated with spot prices at around $123/mt cfr China, from $98.4/mt level at the beginning of June.