There is speculation that SAIL (Steel Authority of India Limited) may either withdraw or reduce discounts on HRC for July deliveries. Currently, discounts are offered in a range of INR 500-750/MT based on quantity and delivery point.
A dealer based in Ludhiana (Punjab) said, “SAIL may cut discounts for next month owing to hike in import duty and expected shutdown at one of its plant in Bokaro. Current offers for 2.5 mm HRC (from Bokaro) are assessed at INR 35,400/MT (including Excise), which is inclusive of INR 500/MT discount.”
Indian manufacturers have kept offers unchanged at previous week’s level for Hot Rolled Coil (HRC) as Indian government raised import duty on steel products by 2.5%. Current offers for 2.5 mm HRC are hovering in the range of INR 34,500-35,000/MT (including Excise of 12.5%; VAT extra) in Delhi, Mumbai and Chennai.
However, market participants believe that import duty will have limited impact as Japan, Korea & ASEAN countries are covered under FTA (Foreign Trade Agreements) and will continue to enjoy lower duty. Participants also mentioned that weak demand is a deep concern for Indian steel manufacturers.
Monthly Average Prices of 2.5 mm HRC
| Particular | Taxes | Jun’15* | May’15 | Apr’15 | Mar’15 |
| Ex-Delhi | Incld Excise | 35,300 | 36,000 | 37,000 | 37,700 |
| Ex-Mumbai | Incld Excise | 34,500 | 35,500 | 36,700 | 37,500 |
| Ex-Chennai | Incld Excise | 35,000 | 35,800 | 36,600 | 37,500 |
Prices in INR/MT
Avg prices from 1-20 Jun’15
Excise included @ 12.5%
Source: SteelMint Research
“Manufacturers may hold offers for July deliveries despite that demand are not very encouraging. Current trade levels are INR 34,800-35,000/MT (including Excise) in Delhi. Supply has been prompt from steel manufacturers. Interestingly, Bhushan is supplying decent quantity at the moment,” said a dealer based in Delhi.
Trade-wise
1.SAIL offers for 2.5 mm HRC (from Rourkela) are INR 34,800-35,000/MT including Excise) in Chennai
2.Bhushan’s HRC trade levels assessed at INR 35,000/MT (including Excise) in Delhi
3.JSW Steel’s dealer is offering 2.5 mm HRC at INR 34,500/MT (including Excise) in Mumbai
4.A dealer in Ludhiana bought HRC from SAIL (Bokaro) at INR 35,400/MT (including Excise)
5.A dealer in Ludhiana bought HRC from Tata Steel at INR 36,200/MT (including Excise)
Note: The details are as per market information.
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