Steel mills and auto manufacturers are switching back to half yearly contracts. As per exclusive information available with SteelMint, final contracts have been fixed as thus: For the July-Sept'21 second quarter (Q2) hot rolled coils (HRCs) have been fixed at INR 5,700/tonne (t) and for cold rolled coils (CRCs) at INR 6,000/t. For the second half (H2) of the fiscal (Oct-Mar '21) HRCs are at INR 3,800/t and CRCs, at INR 4,000/t.
"The auto flat steel price settlement process seems to be reaching some agreement point...," a source informed SteelMint.
Another source indicated that prices depend on the auto OEMs rather than mills. Usually, OEMs settle with one mill and expect others to follow. However, there could be minor differences in prices in