Domestic HRC prices have remained mostly stable in most markets this week due to fewer trades, on the re-imposition of limited lockdown and expansion of containment zones in some cities to control the spiralling coronavirus cases.Prices in a few markets were, however, slightly higher from previous week’s levels.
SteelMint’s assessments of HRC and CRC prices-
- HRC (IS 2062, 2.5 – 8mm) prices were at INR 35,500-36,500/t (ex- Mumbai), INR 36,000-36,500/t (ex-Delhi), and INR 37,500-38,000/t (ex-Chennai).
- CRC (0.9 mm IS513 GR) prices were assessed at INR 41,000-42,000/t (ex- Mumbai), INR 41,500-43,000/t (ex- Chennai) and INR 40,200- 42,000/t (ex-Delhi).
The prices mentioned above do not include GST at 18% rate.
Indian steel mills are expecting further price gains over the near-term amid supply concerns due to logistical hurdles created in places in west India, like Kalamboli and Taloja, due to coronavirus control measures,market participants told SteelMint.
Demand is better now. The price hike earlier this month by large mills is gradually finding acceptance among traders. However, due to uncertainty created by the coronavirus-related restrictions, traders are not keen on booking large volumes.
Outlook – Indian mills are planning to increase prices by around INR 500-1,000/t for Aug’20 deliveries on higher global prices. However, slow pickup in demand and intensity of Covid-19 spread may lead to domestic HRC prices coming under pressure in the near-term.
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