Regional highlights: India and the middle East

摘要

Indian mills showed the same bullish tendencies as those in Russia and China by raising their flat product prices in March. Domestic prices made slightly smaller gains than export prices as mills came under government pressure to contain rises. Tata Steel announced its intention to increase its HR coil prices above Rs27,000/tonne (610 dollars/tonne) for March, a rise of roughly 20-30 dollars/tonne on last month's prices. However, it remains unclear whether this increase will be fully implemented. MBR understands that Ispat Industries, JSW Steel, SAIL and Tata Steel all subsequently agreed to limit their prices to around Rs26,000-27,000/tonne(588-610 dollars/tonne) for March production, a rise of 10-20 dollars/tonne. They were apparently asked to do so by the Indian government, which is understood to be concerned by increasing inflationary pressure within the Indian economy. It is uncertain how the mills' decision may have affected export prices, although it seems possible that it could rein in some of the more ambitious increases recently sought. Prior to the news, Indian mills had increased their offer prices by significant amounts. Commodity-grade HR coil was offered for export to the UAE for roughly 650 dollars/tonne cfr, although it is understood that deals have been concluded at prices closer to 620-630 dollars/tonne cfr. Export prices for galvanised steel also recovered the losses they made during the last two months due to the drop in zinc prices. Indian HDG coil (275g/m2 zinc coating, 1mm thickness) sold for 870 dollars/tonne fob at the start of the month, up by more than 70 dollars/tonne on the previous month.