India large steel mills announce flat products prices down 5% maximum

November 4 MetalBiz--SAIL initially announced to adjust down the spot price of flat products 750-1,500 rupees per ton. Subsequently, Indian private steel manufacturing enterprises-JSW and Ispat also decreased spot price of flat products by 5% at most, that is, 1,500 rupees per ton, which took into effect on November 1. Essar and Tata Steel have not decided to cut price.

Indian CR plate price will be also cut. CRC makers said that CRC price will decrease the same margin following with HRC.

Indian steel mills' move mainly attributed to the steel price drops worldwide as well as the appreciation of rupees against US Dollar. However, the raw material prices such as iron ore and coking coal still maintain firm, so it is forecasted that the further drop is unlikely.

Since the beginning of 2009, benefited from economic stimulus plans of India even the world, Indian domestic steel price jumped about 11%. Presently the stimulus effect is gradually reducing and the actual demand tends to return back normal level. The steel spot price stands at 32,000-34,000 ruppes per ton in Indian domestics and the HRC price is at 31,000-32,000 rupees per ton.

With the appreciation of rupees against US Dollar, Indian steel mills greatly worry about the low-price imported steel's damage to the domestic, especially the imported steel from China. Although China's steel price tends to rebound, the price is still in low level. However, the non-traditional markets such as French begin to export HRC to India with U.S. $456 per ton (CIF). Indian steel mills have taken measures to curb steel import.