Onset of 2010 harangued a booming price improvement. Indian steel majors, who had been sulking for the last couple of months in a survival mode with two successive price cuts in October and November, had reasons to feel ebullient.
The linkage of domestic prices with the international levels is natural but the reactivity has become sharper. The remarkable spontaneity in price movements is primarily to close the gap between “Desi” and “Videshi” prices rather than demand supply equation.
End of 3rd quarter witnessed meltdown in China pressuring offers from Black Sea port as well. Indian steel majors reluctantly reduced the prices in two installments to roadblock deluge of imports. Come December and the effervescence was evident once again reacting to high tide overseas. Import prices of HRC ascended by USD 40 per tonne to USD 50 per tonne as China domestic levels oscillated once again.
Indian steel majors unanimously hiked flat product prices wef January 1st 2010 in the range of INR 1500 per tonne to INR 2500 per tonne. It is reported that plate prices have gone up by INR 1500 per tonne whereas HR, CR and HDG has been jacked up by up to INR 2400 per tonne. The resplendence was writ large on the market across the country with an imposing gain of up to 8%.