Indian HRC Prices Decline by INR 200-300/MT in Retail Market

Indian HRC offers have declined by INR 200-300/MT in retail market owing to sluggish demand and cheaper import. Current offers for 2.5 mm HR Coil (HRC) are assessed at INR 36,000/MT Ex-Delhi, INR 35,000-35,500/MT Ex-Mumbai and INR 35,800/MT Ex-Chennai (all prices including Excise). While, Ex-works prices for steelmakers are around INR 28,500-29,500/MT (excluding Excise).

“Prices have corrected by upto INR 200-300/MT in retail market. On one hand, import is increasing continuously and on the other, export from India has fallen, leading to increase in material supply in domestic market. If situation continues, steel manufacturers have to reduce prices for June”, said a dealer based in Mumbai.

Imported HRC Offers Fall

Imported HRC offers have fallen for Indian market. Current offers are assessed at USD 380-385/MT from China, USD 375/MT from Ukraine and USD 410-415/MT from Korea & Japan (import duty from Japan/Korea is 0.8-1.25%. Whereas, from China and Russia is 7.5%).

Price difference between imported and domestic HRC is around INR 3,000-3,500/MT. Landed cost of imported HRC for a dealer based in Mumbai would be around INR 31,500/MT. Whereas, domestic prices are in the range of INR 34,500-35,000/MT.

Indian Steelmakers may Cut Prices in June

Indian steelmakers may either cut prices to increase rebate for dealers in the month of June. Dealers are hopeful that price cut will generate some buying interest in the market.

Domestic & Imported HRC Offers

Source: SteelMint Research