Indian steel products price shoots up

MUMBAI(Commodity Online):  Flooding in Australian coal mines in addition to the sky rocketing of scrap and iron ore prices has triggered the steel product prices went up phenomenally in Indian domestic market.

In line with this the Indian Long Product Price Index (ILPPI) surged by 143 points on January 10th 2011 whereas Indian Flat Product Price Index IFPPI went up by 102 points. The overall Indian Steel Price Index INDSPI went up by 123 points.

The worst flood in 50 yrs in Australian coal mines has created a havoc of shortage having a eruptive effect on the prices. It is anticipated that the coking coal prices will cross the USD 300 per tonne mark within Q1 from the current levels of USD 250 per tonne.

Scrap prices has been riding crest for the last couple of months is expected to remain firm in January primarily owing to winter shortage. The scrap prices in the domestic market which had been relatively silent too got engulfed in the fire with a gain of up to INR 1400 per tonne today.

Iron ore prices have improved by nearly INR 300 per tonne in the last 1 week in domestic market propelled by shortage.

It is learnt from market sources that bolstered by the current blitz in long and flat product prices some of steel majors have hiked steel prices by another INR 1000 per tonne.

In their insatiable quest for market capitalization the steel companies seem to be going full hog with 5th price revision in the last 40 days.

The secondary manufactures have reacted in equal measure with a hike of another INR 1000 per tonne. The current gap between secondary and primary price of INR 1500 per tonne being less than the usual INR 2500 per tonne there is elbow room for the majors to edge forward.