An Indian company has raised its monthly domestic prices for February by Rs 300 per tonne (approximately $4) to Rs 5,200 per tonne (approximately $70) for 65.5% iron lump ore and by Rs 200 to 4 260 rupees per ton (approximately $57) for 10mm fines with 64% iron content.
“The increase in prices is not very surprising as steel prices have risen over the past two weeks, indicating a scenario for improving demand,” said Ritabrata Ghosh, assistant vice president of rating agency Icra Research.
On January 28, the Hot Rolled Coil Price Index (HRC) for the Indian domestic market was Rs 65,500/t, up 17% from a year earlier.
“Infrastructure spending was cut through December and we are now seeing some growth and with omicron not posing a major threat as originally expected, there should be a general recovery in demand for steel and raw materials,” Ghosh said.
Domestic demand for steel declined in November and December due to a construction ban in northern India and untimely rains in the south of the country. Finished steel consumption in India fell by 15% year-on-year to 8.73 million tonnes in December.
The Argus ICX 62% Daily Iron Ore Index stood at $147.10 per dry metric ton today, down 6% from a year earlier but up 23% from the previous month. Prices rose amid supply disruptions and expectations of strong post-Christmas demand in China.
