Indian HRC Prices correct by INR 1,000/MT

After the expectation for import duty hike was quashed, Flat steel prices headed for another correction this month. As per trade sources, HRC prices have declined by INR 1,000-1,300/MT (USD 16-21/MT) as compared to last month’s prices. Currently, IS 2062 grade HRC (2.5 mm) is being traded at INR 37,000-37,500/MT. SteelMint learnt from market sources that correction in international HRC prices and competitive import offers have resulted in this correction.

“It is wise to sell the material in domestic market when export offers are not viable at the moment. There is still a difference of INR 2,000-3,000/MT (USD 32-47/MT) between domestic and imported HRC and this has led to correction in domestic prices,” said an industry expert based in Mumbai.

Dealers in Ludhiana & Faridabad quoted that HRC offers are hovering in the range of around INR 37,200-37,500/MT. Manufacturers have given a discount of up to INR 1,300/MT across different HR products in contrast to last month’s prices.

Similarly, a dealer in South India claimed that HRC prices have corrected by INR 1,000/MT. Speaking to SteelMint he said,

“Officially, we were expecting a price cut of INR 700/MT. However, recent auctions of HR Coils revealed that prices have corrected by INR 1,000/MT”.   

Prime HR Coils are trading at INR 37,500-38,000/MT. Whereas in Bellary, HRC (secondary) is offered at INR 37,000-37,500/MT.

Demand is quite poor at the moment and companies are struggling harder to meet their sales target for this financial year. A trader speculated that due to lower trading volumes, few primary players have reduced production in order to battle with cheaper imports and oversupply in the market.
 
Chinese Exporters raise HRC Offers

Export offers for Chinese commercial grade HR Coils have increased this week post Chinese holidays. Current offers for tube grade HRC are assessed at USD 400/MT, CIF India, which was previously trading at USD 385-390/MT, CIF India. However, Indian importers have not confirmed any deals at these prices.

*All domestic prices mentioned are inclusive of ED, VAT extra.