Indian Major Mills Increases Finished Steel Prices For February 2023

_{The demand for flat products, such as HR coils has improved in the domestic market along with exports. The market for flat products is seeing a continuous rise, with mills receiving good order bookings. Traders throughout the country have made good sales, purchases, and booked flat products from various mills during January 2023, pushing mills to keep prices higher for fresh orders.}

_{A few major (primary) steel mills in India have further raised their prices for long and flat steel products. The price hike in finished long steel products was reported by Rs 1,000-1,500/ton, while finished flat steel prices increased by Rs 2,000-2,500/ton, compared to the last operating price at the end of January 2023.}

_{With this revision, fresh offers for TMT (long steel product) have been recorded at around Rs 63,500-64,000/ ton ex-works Delhi and Mumbai. Offers for HRC (hot rolled coil) flat steel stand at around Rs 60,000-60,500/ ton ex-works Delhi and Rs 61,500-62,000/ ton ex-works Mumbai. All prices are exclusive of GST.}

_{Reasons Behind The Strengthening Prices}

_{Healthy Export Demand: Since the Indian government removed export duties on 19 November 2023, mills have become quite active in terms of overseas sales of flat steel products.}

_{According to trade sources, most of the mills are fully booked for export orders until February 2023 and even for the first half of March 2023. The Indian HRC export offers have increased to around $705-710/ton, up from $690-695/ton last week on a FOB west coast basis.}

_{Demand continues to be strong, with an increase in prices from Chinese mills after the holidays, and demand from Europe and the Middle East remains active.}

_{Rise In Coke And Iron Ore Prices: Prices of base raw materials such as coking coal and iron ore climbed in January 2023. Australian coking prices rose by $50-55/ton in the previous month, with current offers of around $360-365/ ton CNF India for premium HCC.}

_{Additionally, iron ore prices rallied in the domestic market, increasing by up to Rs 500/ ton by NMDC, India’s major miner. Pellet prices also rose sharply by around Rs 500-1,000/ ton in January 2023.}

_{Short Term Outlook}

_{As per industry experts, the short-term future outlook for the steel market is positive. The recent price hike for long and flat steel products, along with healthy export demand and strong domestic sales, indicate that the market is performing well.}

_{The removal of export duties by the Indian government has increased the mills’ activity in overseas sales, with most of them fully booked for export dispatches. The market for flat products has improved with good order bookings from end-users. The rise in base raw material prices has also contributed to the market strength. However, it should be noted that the market is highly dependent on various factors, including global demand and supply, and any fluctuations in these factors could impact the market in the short term.}

Read more: Budget 2023 Outlook For MSME, Agriculture, Chemical, And Metal Sector