SAIL Offers Discount of INR 1,000/MT on HRC – Trade Sources

Steel Authority of India Ltd (SAIL), a state-owned and India’s largest steel producer, has offered a discount of upto INR 1,000/MT on HR Coil of grade IS 10748, confirmed market sources.

2.5 mm HRC is being offered at around INR 30,700/MT (excluding Excise and VAT), which was offered at INR 31,700/MT (excluding Excise and VAT) last week on Ex-yard Hyderabad basis, confirmed a tube manufacturer in the state. However, there has been no official confirmation from the manufacturer.

Cheaper import from Russia, Korea and China coupled with declining steel export from India have resulted in excess supply of material in domestic market.

Other manufacturers may cut prices in coming month looking at weak demand and coming monsoon in June.

Trade-wise

1. Traders offering 2.5 mm HRC at INR 33,750/MT (including Excise, Ex-Tatanagar)
2. 2.5 mm HRC offers are assessed at INR 36,000/MT (including Excise, Ex-Delhi)
3. Offers in Mumbai are assessed at INR 35,000/MT (including Excise)
4. Imported offers from China are assessed at USD 385/MT, CIF India
5. Imported offers from Korea are assessed at USD 410-415/MT, CIF India

2.5 mm HRC Prices as on 25 May’15

Source: SteelMint Research

Monthly Avg Prices in INR/MT including Excise of 12.5% , VAT Extra