HRC prices in Delhi & NCR regions have corrected by INR 400-500/MT this week. Market sources reveal that cheaper prices in recent auctions of HRC have led to this correction. A trader said, Prime HRC is currently trading at INR 39,000-39,500/MT + VAT in Delhi.
A trader based in Faridabad quoted offers for HR sheets of thickness 1.6-6 mm at INR 38,500/MT + VAT. This pattern of declining prices is likely to continue till the demand from manufacturing sector revives. Market participants complained that there is acute shortage of cash in the market and this has restricted trading activities to a great extent.
Lower Import Offers
Indian steelmakers blame cheaper imports of HRC from China and Russia for falling domestic prices. Deprecating currency in Russia and falling steel prices in China give an edge to exporters based there. Current offer for commercial grade HRC from China is USD 440/MT and from Russia is around USD 435-440/MT, CIF India.
Lower Export Realizations
Strong Indian Rupee and falling steel prices in the global market are fetching lower export realizations for Indian Flat steel manufacturers and exporters. Offers are assessed at around USD 450/MT, FoB India for 3 mm Prime quality HRC. Rupee at 61.5/USD average export realization for Indian steelmakers is around INR 28,000/MT (ex-plant). Whereas, if they sell in the domestic market, realizations are around INR 32,000/MT (ex-plant).
Indian Steelmakers hopeful of Import Duty
Indian steelmakers are quite optimistic about government imposing import duty on cheaper imports from China and Russia in upcoming budget session starting 23 Feb, 2015.
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