Tue, 05 Dec 2023

HRC prices are going up, and for all the right reasons!

16 Jan 2023, 23:45 GMT+10

New Delhi [India], January 16 (ANI/ATK): Prices in India of HRCs are hovering in the Rs 57000.00-60000.00 has seen a steady increase since October. And not without reason. End-user industries, be it exports, domestic infra consumption, FMCG and automotive vie with each other for steel, and companies take the favorable position to do some good for themselves. It isn't the case that it's only pure profits in mind. Other considerations include the high cost of coking and power-sector-related coal.

The past months from Sept-Oct 2022 saw only a downturn for the steel and HRC producers with the GOI imposing export duties to deter exports to lucrative markets in the west in favour of domestic demands. Adding to this was the sluggish local demand from most traditional sectors including realty. Adding to the problem were imports from places like China, itself reeling under huge inventories due to the covid-related drop in demand. All these in no small measure put huge pressure downward on local prices and losses to producers.

But from the mid of December 2022, things have changed with sectors including automotive registering health off-take due to sales which include a December 2022 production of over 1.2 lac vehicles. Tata Motors in the calendar year 2022 has had a YOY increase in excess of 2.5 lakh vehicles. At the same time, FMCG and home appliance markets have been registering a healthy come-back. Even before that, the cause of celebration was the withdrawal of the export duties on steel exports.

All of this increase is positively influencing industrial production in the steel sector with only one sore point. Of that of imported coke prices registering an increase. While it primarily comes from Australia, its prices on new year's eve were USD 260-300 range that at present has crossed USD 300 per MT.

Vedant Goel, Managing Director, Neo Mega Steel LLP says, "A price hike and that too of non-consumer items that are absorbed effortlessly by the system indicates only one thing! Good times are here, the economy is picking up, and people are ready to pay if it means a steady supply. Hope these prices are maintained and so too is the demand!"

All in all, these are good times!

This story has been provided by ATK. ANI will not be responsible in any way for the content of this article. (ANI/ATK)

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