In a slew of announcement Ukrainian mills have shown significant improvement in their offer prices thus giving ample room to Indian steel majors to go for big hike either now or on February 1st 2011.
The prominent changes were as follows
Zaprostal
1. H R Sheets USD 725 per tonne FOB, Black Sea
2. HR Coils USD 715 per tonne FOB, Black Sea
3. CR Coils USD 820 per tonne FOB, Black Sea
Ilyich
HRC USD 700 per tonne FOB, Black Sea
The above prices are about USD 40 per tonne to USD 45 per tonne improvement over previous levels of USD 730 per tonne CNF Mumbai.
The impact on Indian import prospects would be detrimental as the domestic levels are prevailing at INR 35811 per tonne excluding ED and VAT at Mumbai entailing a gap of INR 2585 per tonne with import levels leaving the Indian mills in advantageous position with enough cushions to inch upwards.
| | In USD | IN INR |
| CFR Price | 775 | |
| Custom Duty | 43 | |
| Port Expenses | 10 | |
| Landed at Mumbai Port | 828 | |
| MODVAT | 122 | |
| Inland Transport | 10 | |
| Total landed | 961 | 44003 |
| Net of MODVAT | 838 | 38396 |
| USD :INR | 45.80 |
(Source:www.steelprices-india.com)
Thus the buyers shall brace for announcements of major hikes by Indian steel majors in short term.
On the other hand, these prices levels are likely to bring back Chinese steel mills into game.
www.steelprices-india.com is a comprehensive portal that provides domestic pricing information for benchmark steel products in each category at select location in India on a regular basis 5 days a week and international price levels on a weekly basis.
As steel in each category comes in hundreds of grades shapes and sizes, we have taken benchmark products in each category at select locations to cover the entire basket of garden variety of steel products including input material for steel making and processing.
Products covered
1. Input materials - Iron ore, scrap, sponge iron, pig iron pencil ingot, billets and blooms
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3. Flat products - Narrow plates, wide plates, HR, CR and galvanized
4. Others - Pipes
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4. On fixed market oriented payment terms
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6. Data available since July 2008
5. Access through web site
Price basis
Without ED and VAT for all products except for rebar and sections
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The prices are displayed on weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available.
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Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news.
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