Indian HRC Prices: Week 24

Indian HRC prices remained firm this week after discount of upto INR 1,000/MT were offered by major steel mills. Current offers for 2.5 mm IS 2062 grade were assessed at INR 35,000/MT (ex-yard Delhi, including excise; VAT extra) and INR 34,000-34,500/MT (ex-yard Mumbai, including excise; VAT extra).

Over all demand remains subdued owing to cheaper import and under performing automobile sector. However, steel manufacturers are quite optimistic that with more coal and iron ore mines opening up, flat steel demand will raise in month to come.

“Prices have almost bottomed out; may be a correction of INR 500-1,000/MT can be observed. We are hopeful that opening up of mines will boost flat steel demand in India,” said a senior marketing executive at one of the largest steelmaker in India.

Export

Indian exporters hold HRC export offers at USD 400-405/MT, FoB India. Cheaper offers from Korea, Japan, China and Russia keep Indian steelmakers out of the market.

Import

Import offers to Indian market this week remained firm. Offers from Korea were assessed at USD 400-405/MT, Japan at USD 395-400/MT and China at USD 375/MT on CIF India basis.
Market participants expect that rising iron ore prices in global market will leave limited scope for price correction for Chinese steelmakers.

Domestic & Imported HRC (2.5 mm) Offers

Source: SteelMint Research