Falling domestic demand and increasing imports of Flat steel have made some room for correction of steel prices in Indian market. This is noticeable in NCR region, which is one of the largest trading hubs for HR Coils. Traders based in Faridabad confirmed that HRC is trading at discount as compared to previous months.
The slowdown in volume of trade in NCR region has led to correction in trading prices by around INR 500-700/MT. It is to be noted that HRC of 2.5 mm thickness were previously trading at around INR 43,000-43,500/MT in Faridabad. Although, domestic manufacturers restrained themselves from any major price hike this month, traders & dealers are offering discounts on current market prices.
Talking to SteelMint, one of the traders based in Faridabad said,
“Markets here are unable to accept the current prices, which are too high and thus we are offering discounts. Currently, we are offering HR Coils of 2.5 mm at INR 42,300/MT (USD 705), whereas Coils of thickness 3 mm is offered at around INR 42,000/MT (USD 700) for immediate payment”.
Earlier, SteelMint has reported that traders & dealers were facing serious issues in settlement of payment from the industries. In order to prevent further lapses in settlement of payments, traders are preferring ‘Cash & Carry’ option (immediate settlement of payment) rather than selling at a credit.
Similarly, HRC prices of 2.5 mm in Tatanagar traded at around INR 40,500-41,000/MT, whereas in Ludhiana it remained unchanged at INR 43,500/MT levels.
Rising Imports of Flat Steel
Industry experts believe that better import offers have started pouring in as Chinese Hot Rolled prices have fallen below USD 510/MT FOB Shanghai. As per data available with SteelMint, imports of Flat products have increased in the past few months. Improving imports and any further correction in international prices may force domestic manufacturers to revise their prices soon.
*Note: All domestic prices mentioned are inclusive of Excise duty, Taxes extra.
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