Domestic HRC prices continued downtrend on 20-25% of trades happening in the domestic market amid lock-down.
HRC prices fell by INR 250-500/MT this week in few major markets on the back of limited trades happening in the domestic market. Labour availability has continued to remain a major concern and also prevailing lockdown in India until 31st May’20, which may get extended further up to Jun’20 has continued to keep trades on the lower side.
SteelMint’s current assessment for HRC (IS 2062, 2.5 – 8mm) for trade segment stands at INR 36,500-37,000/MT (ex- Mumbai), INR 37,000-37,500/MT (ex-Delhi), and INR 38,000- 38,500/MT (ex- Chennai).
Currently CRC ( 0.9 mm IS513 GR) prices are assessed at INR 42,000-43,000/MT (ex- Mumbai), INR 42,000-43,500/MT (ex- Chennai) and INR 42,200- 44,500/MT (ex-Delhi). The prices mentioned above are basic, and extra GST @18% is applicable.
A major HRC distributor shared his opinion on the current market situation that, “Current demand in the domestic market is around 20-25% and Indian mills shall review the current prices and offer discounts in Jun’20. Also, a few mills have exported nearly 70% of their production which may, in turn, impact domestic supplies in the near term”.
Similarly in southern India trade sources shared that the absence of orders from small and midsized industries, shortage of labours, and disturbed payments resulted in falling HRC prices.
On the other hand, Indian steel mills are likely to announce the price revision in domestic flat steel prices for June deliveries shortly.
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