PTI reported that at least a couple of Indian steel makers have raised the price of flat products by up to INR 1,500 per tonne since December 1st to align the domestic price with landed import costs, now hovering between INR 35,000 tonne to INR 36,000 a tonne.
The move to hike hot rolled coil price, considered as the benchmark flat product, is likely to impact the end use segments like automobiles and consumer durables.
An industry source said that "The price for HRC in the US has shot up by over 12% in December over the immediate past month. As a result, the imported cost of steel to India also increased. At least a couple of domestic producers have hiked the price by up to INR 1,500 a tonne to align with the current imported cost of the metal."
Source said that the price hike is also a reflection of the buoyancy in the domestic demand and an attempt by the producers to pass on the inflated price of raw materials to consumers.
However, barring state owned Rashtriya Ispat Nigam, no other steel maker came on record on the price hike. A hike in steel price often translates into the price escalation by end use segments. Flat steel products have a 2.61% weightage in the wholesale price index.
PSU in a statement said that "On December 1st, RINL has raised prices of steel products by up to INR 500 per tonne as per the market conditions."
However, SAIL, said that "Our prices are stable. There has been no change."
Mr CS Verma chairman of SAIL said that there had been a brisk demand for the last few days resulting in picking up sales for both HRC and long products
The official said that long products are mostly used in the construction sector, but the price for such products is unlikely to rise now since it is already higher than flat products. Generally, the price for flat products is higher than long products in the international market.
Meanwhile, messages sent to private sector producers such as TATA Steel, JSW Steel and Essar Steel failed to elicit any reply, but reliable sources said Essar Steel has increased the price by INR 1,500 a tonne with effect from December 1st and TATA Steel is likely to follow suit towards the month end.
The source said that "A case has been building up for steel makers to increase the price as due to increase in input costs by about USD 20 to USD 30 and rupee depreciation, their margins are under severe pressure."
