Flat Steel manufacturers have maintained their prices for the month of May’14, with minor alterations seen in trading prices across some regions in India. Last month, manufacturers like JSW & Essar reduced their prices for Flat products, but owing poor demand in the market, manufacturers decided to roll over their prices for this month.
However, Flat Steel prices saw some minor hikes and reductions according to SteelMint sources. HRC prices in Ludhiana have seen a mild increment in the range of INR 250-300/MT, whereas no change in CRC prices was observed. Traders believe, this minor price hike is negligible.
Demand is modest and inventory is at optimum. This price change is owing to a demand & supply mismatch and hence, it will not impact markets. Currently, HRC is trading at around INR 43,800/MT whereas CRC is trading at INR 49,500/MT– said a Trader
Meanwhile, prices of HR Coil 2.5 mm, manufactured by Bhushan Steel is trading at a discount of INR 1,000/MT in Raipur.Some market sources speculate that SAIL has lowered the price of Flat products by INR 500-600/MT across some regions.
Speculations in Ahmedabad, Faridabad and Kolkata markets remained high as traders haven’t received an official confirmation from their respective authorities. One of the traders here stated
We have heard from market sources that prices are rolled over for this month, but haven’t received any official confirmation yet. Currently prices continue to trade at previous levels .
Markets in Mumbai are witnessing some temporary shortage in supply of Cold Rolled and Galvanized products. Some market participants view that manufacturers might take an opportunity to increase their prices by INR 300-500/MT to take advantage of this supply shortage.
Talking to SteelMint, one of the officials of a secondary Flat manufacturer based in Mumbai said, “Although usual demand has not returned to the markets, there has been a temporary shortage of CR, GP and GC products. This might lead to price variations in the near term.” When asked about, whether there is any possibility of price hike, the official refused to comment further.
Improving Import Parity may restrict any Price Rise
Rising import parity of HRC from Chinese market have put Indian flat steel prices under check. Current offers for HRC 2.5mm commercial grade is at around US$ 550-560/MT CFR India that comes out to be around 42,500-43,000/MT (Ex- Port, Incl Excise and VAT Extra).
On the contrary Indian manufacturers are offering HRC of 2.5 mm at around USD 550/MT FOB West Coast, which will fetch those lower realizations as compared to domestic prices.
The current month is going to be crucial for manufacturers as election results will give a direction to this beleaguered industry.
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