Depressed demand and liquidity issue may not support any proposed hike in flat steel prices in Indian domestic market. Market participants highlight that primary steel makers which hiked their prices by Rs 1,000-1,500/t have failed to get any enthusiastic response from end customers and stockists.
Although some big manufacturers are indicating further hike in steel prices for May, despite weak demand and thin trading trading volumes.
Currently MS Plate of 5-10mm size is offered at Rs 34,500-36,000 (Basic,Ex-Works), Medium thickness of size 10-20mm is trading at Rs 34,500-35,500 (Basic,Ex-Works) and plate of size 20-40mm is offered at Rs 34,500-35,500 (Basic,Ex-Works).
On the other hand stockists and dealers rule out the scope of further hike specially when imported offers are comparatively cheaper.
“Due to lack of small projects (net worth 25-50 Crores) inception in the country, demand of flat is low. Mostly demand is coming from big projects that accounts to 40-50% of sales†said well know project supplier/vendor based in central India.
He also said we are demanding March price to mill owner (i.e. lower by Rs 1000/t from present price) due to low demand.
HR Coil of 2-8mm is offered at around Rs 34,000-35,000/t (Basic,Ex-Works) Whereas imported material of same size is available at Rs 33,000- 34,000/t (Basic, Ex-plot Mumbai), he further added.
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