Indian steel majors are likely to hike prices in September by $15-20 a tonne, following a steady rise in global steel prices resulting from the increase in the price of scrap and iron ore. Iron ore spot prices have shot up from $75 a tonne earlier this year, to $130 now.
The average price of hot rolled coils (HRC) in Europe is around $670 a tonne and that of cold rolled coils (CRC) is $766 a tonne, according to the World Steel Dynamics.
Average HRC prices in China have increased by $58 a tonne in the last one-and-a-half months, from $402 to $460 a tonne, whereas average CRC prices have increased by $18, from $529 to $547 per tonne.
Even in the sluggish US market, the price of HRC has registered an average increase of $5 a tonne. HRC prices in the US are reported at $565 a tonne and CRC prices are at $658 a tonne.
Said Sajjan Jindal, VC & MD, JSW Steel, ?Chinese companies have started increasing steel prices and I believe there will be an upward revision of prices in India as well.?
?We expect a minimum increase in prices of HR coils by $10-20 a tonne. Internationally, the price of HR coils increased on an average by more than $30 a tonne. We are yet to take a decision on a price hike, but there is a strong possibility that the Indian steel industry will opt for one,? said Anil Surekha, ED (finance), Ispat Industries.
?After three months of consecutive declines, steel prices are now set to rebound, and companies like Tata Steel, JSW and Sail will be key beneficiaries,? said Vishal Chandak, analyst, Emkay Share & Stock Brokers Ltd.