Domestic Flat steel prices had been under constant pressure in the last two months as rising imports have affected the pricing power of domestic manufacturers. In a move to keep prices under check, last week JSW Steel had announced a price cut of INR 500-750/MT, according to industry sources. After a truncated week of trading, volumes have not shown any signs of pick up. Meanwhile, it is learnt from market sources that other manufacturers like SAIL and Essar have restrained from any major price cut.
Domestic manufacturers are offering competitive price as compared to cheaper imports. While, talking to one of the importers in Mumbai, SteelMint learned that imported Plates are offered at INR 500-1,250/MT less as compared to domestic Plates. Commercial Plates from China are offered at INR 40,700-41,000/MT. Imports of Flat steel product have increased by 45% in Aug’14 M-o-M.
HR Coil prices in Delhi and NCR region also remain unchanged as traders continue to take a cut on their margins by offering discount to customers. HR Coil of 3.0 mm in Faridabad is last traded at INR 42,500/MT and trading volumes remain muted in this region.
Increasing burden for procurement of raw material and poor demand in the domestic market are upsetting domestic manufacturers, who are unable to raise prices at the moment. Similarly, trading prices have reduced by INR 200-250/MT in Ahmedabad for Cold rolled products. Domestic Cold rolled coils of thickness 0.7 mm and above are now offered at INR 49,750/MT as compared to INR 50,000/MT. Whereas, HR Coils are being traded at INR 43,400-43,750/MT.
Flat steel prices in Chennai too encountered no major fluctuations this month. HR Coils of 3.0 mm is traded at INR 42,000-42,500/MT and imported CR Coils of Nippon Steel are offered here at INR 48,200-49,000/MT, said a local trader.
*All domestic prices are inclusive of ED, Tax extra.
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