The Indian Flat Product Price Index IFPPI has surged by 341 points or 5% since March beginning reflecting massive increase in prices of plate products especially in hot band.
The price increase is most predominant in HR but is followed closely by downstream CR and HDG.
Mumbai is leading the surge in flat products prices where HR, CR and HDG prices have gone up by about INR 2400 per tonne, INR 2800 per tonne and INR 2700 per tonne during this period.
As per market sources, the surge in prices is driven by sentiments that Indian steel makers are likely to resort to price hike as global prices are surging. The flat product market was in a state of frenzy on March 8th 2010, as traders started holding on to their stocks anticipating higher returns in coming days.
Price increase at other locations has not been as much and in all likelihood we shall be seeing surge in flat product prices in other locations as well.