This week domestic HRC prices in India have witnessed decline of INR 500-1000/MT against last week over bearish market sentiments coupled with competitive offers from major exporting nations like China and Japan. This has also lead to weaker prices of HRC in domestic market.
Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 46,000/MT (ex-Mumbai), INR 46,500-46,700/MT (ex-Delhi) and INR 47,000/MT(ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.
Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 51,000-51,500/MT(ex-Mumbai),INR 53,000-53,500/MT (ex-Delhi) and INR 53,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.
Sharp correction seen in Chinese HRC export offers: Chinese HRC export offers witness persistent fall over weaker domestic market and is hovering around USD 500/MT FoB basis. Chinese HRC export offers have declined by USD 60-65/MT on monthly basis. Taking freight into consideration, landed cost to India will stand around INR 44,000/MT. Although no firm offers from Japanese mills were heard but bids from Indian importers were around USD 560-565/MT, CFR India levels, although deals haven’t been reported at these levels.
However basic prices of HRC in Mumbai is around INR 46,000/MT.Indian mills are heard to have offering discounts/rebates to escalate buying interest.
As per our analysis, imported HRC from China is competitive against prevailing domestic offers which has put Indian domestic market under pressure.
Thus it will be interesting to watch how major Indian manufacturers decide prices for Dec deliveries.
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