Decreasing demand and falling profits have forced traders to reduce prices by INR 300-500/MT in Delhi and NCR region. HRC prices in the region have corrected by almost 2% within 45 days. As per trade sources in Delhi, demand has not improved much, rather they are moving down.
Trading volume has slowed down drastically in the past two weeks, thereby increasing the concerns of traders. In addition to this, payments from small & medium enterprises are very weak and it takes more than 60-90 days to settle the payments.
Domestic prices are under pressure owing to availability of cheaper imported material from China. In Delhi, HR Coils are trading at INR 42,300-42,800/MT*. Whereas, HR Plates of 5-10 mm thickness are trading at INR 42,500/MT.
Trading activities in Mumbai remain active as a recent shipment containing HR Coils and Plates reached Mumbai within last 5 days. Imported HR Coils are offered at INR 42,200-42,700/MT. Whereas, domestic HRC prices are trading at around INR 43,000-43,500/MT.
Similarly, trading activities in Ludhiana too remain dull on the backdrop of poor demand. Mills purchased minimum quantities based on specific requirement of clients. HRC 2.5 mm in Ludhiana is trading at around INR 43,300-43,500/MT. At present, imported HRC is less feasible in Ludhiana.
One of the traders here said,
“Imported products are currently not feasible in our market; there is no such imported offer in our market as such. Our market here is mainly suffering because of poor trading volumes. We expect the prices to decline in near future.”
Meanwhile, HRC prices in Chennai remain unchanged at INR 42,800-43,000/MT. Cheaper imported Flat products have been a concern for domestic manufacturers since they have lost their pricing power in this market. Flat products are imported at rates quite cheaper than the domestic manufacturers, thereby eating up their market share.
*All prices mentioned above are inclusive of Excise duty, taxes extra.
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