JSW Steel raises prices of long, flat products by about Rs 3k per tonne

Jindal Steel Works (JSW) Limited has increased prices of both long and flat products by Rs 2,000 to Rs 3,500 per tonne. The price hike comes after the rising demand in the September quarter. After stable holding prices in the September quarter, the domestic steel prices increased by Rs 1,500 to Rs 3,000 per tonne in October, while its long products increased by Rs 3,000 per tonne in the first week of October, followed by increased demand and prices of coking coal. The prices of coking coal have increased by $30 per tonne during the last quarter and are expected to increase to $100 per tonne in the December quarter. Research Analyst of ICICI Securities, Abhijit Mitra, said that coal prices have increased to Rs 15,150 per tonne in the September quarter, compared to Rs 11,480 per tonne during June quarter and expected to increase to Rs 23,000 to Rs 25,000 per tonne. However, despite the price hike of steel, domestic prices are at discount prices to the landed cost of imports. Crisil Research Limited expects increased prices of the domestic hot-rolled coil by 56% year-on-year (YoY) model to Rs 63,000 to Rs 64,000 per tonne. Thermo Mechanically Treated (TMT) bars prices are expected to increase by 29% to Rs 53,500 to Rs 54,500 per tonne. China hot-rolled coil (HRC) and free on board (FOB) are expected to increase by 83% to $880 to $900 per tonne. Its price was $980 per tonne in September, but due to a decline in demand, the prices fell to $930 per tonne. The cost and freight rate of coking coal is between $400 to $420 per tonne, compared to $100 to $110 per tonne during the same period last year. The prices of China's domestic coal are even higher and are expected to cross $600 per tonne. Image Source Also read: JSW Steel plans to levy surcharge on sale of steel products