Steel prices are likely to see a hike of Rs 3,250-10,000/t across flat steel/coated products in India in the coming week as per channel checks done by brokerage house Morgan Stanley.
This price hike would make domestic prices come closer to the price of imported steel which is still about 5% higher. Domestic hot-rolled coil (HRC) prices are at a multi-year high of Rs 67,000 per tonne in February from Rs 39,200 per tonne in March 2020. Since October, prices of HRC have increased by about 54% but still trail the global steel rally. Landed cost of HRC (hot rolled coil) from China still remains higher at Rs 77,000 a tonne and seen a big rally over the last two sessions.
This translates to bad news for steel input users such as the auto companies that are seeing input cost pressures rise in a low demand period. Auto makers had begun to pass on the cost to customers via price hikes in April but room for increases remain limited in the current weak demand phase.