SAIL Likely to Cut HRC Prices by INR 700-1,000/MT – Trade Sources

India’s biggest steel giant, SAIL is expected to reduce its HRC offers by INR 700-1,000/MT and other major players may follow suit.

Looking at increasing pressure of cheaper import from China, Japan and Russia accompanied with subdued domestic demand, Steel Authority of India Limited (SAIL) is likely to lower domestic HRC (2.5 mm grade) prices in the range of INR 700-1,000/MT, as informed by the market sources. However, it is also anticipated that other market players may follow suit.

Currently, China is offering HRC (2.5 mm grade) in the range of USD 325-330/MT whereas, the same is being offered from Japan in the range of USD 370-380/MT, and from Korea in the range of USD 370-375/MT (all offers are on CNF India basis).

India’s total HRC import in Q1 FY16 was 738,000 MT and CRC was 378,000 MT.

With price correction, HRC prices are expected to be in the range of INR 32,500-33,000/MT  (ex-Mumbai) and INR 33,000-33,500/MT (ex-Delhi, ex-Chennai and ex-Kolkata)*. With HRC price correction, CRC manufacturers in domestic market are also likely to follow suit. However, price cut is just an anticipation and no confirmation is made on the same by the company’s officials. *(including excise)

In order to deal with influx of cheaper import, Indian steelmakers are hopeful that the government may impose safeguard duty, which will restrict import and will boost domestic prices.

HRC (2.5 mm) as on 30 July’15

Prices including Excise of 12.5%
Source: SteelMint Research