Indian HRC Prices Stable on Subdued Demand

Indian Hot Rolled Coil (HRC) prices remained stable this week at the level of INR 37,000-37,500/MT ex-Delhi (including Excise). Trade activities also remained low amid financial year ending. Participants expect that Indian steelmakers may correct prices for April owing to rising imports.

“There is no confirmation on prices, however, we expect it to come down by at least INR 500-700/MT. Demand has been very moderate in last few weeks and we do not see any significant rise in coming month. Current prices for 2.5 mm HRC are hovering in the range of around INR 37,000-37,500/MT (including Excise),” said a dealer based in Delhi.

On the other hand, an official from SAIL mentioned that the company is in process of introducing new policies for MoU holders. He further added that there should be no changes till declaration of the policies.

Lower Realization in Export  

Export realizations have been very low for Indian steelmakers due to cheaper offers from Chinese and Korean steelmakers. It is heard that an Indian exporter has sold about 25,000 MT HRC to Malaysia at USD 410-412/MT, FoB West Coast India.

Experts believe domestic steelmakers are likely to be under pressure because of rising imports and falling realizations in export market.

Indian government today has reduced import duty on steel from Japan to 0.8% under Free Trade Agreement signed in 2011.

India’s Flat Steel Import (in ‘000 MT)

Source: JPC