Domestic HRC market opened on a stable note on Monday owing to import reluctance and a three-day holiday lull in Chinese market.
Indian HRC prices have stabilized at the start of the second week of September. As per trade sources, some manufacturers are even heard to have increased their domestic offers in the range of INR 500-700/MT.
Indian steel market is also abuzz with the news of safeguard duty and thus some players are awaiting confirmation regarding the same.
Currently, 2.5 mm (IS 2062 grade ) HRC is being assessed in the range of INR 32,500/MT (ex-Mumbai and Chennai) and INR 33,300 (ex-Delhi). All prices include excise of 12.5%.
Export offers for 2.5 mm HRC from China are being assessed at USD 315/MT and in the range of USD 355-360/MT from Japan/Korea (both offers are on CNF India basis).
Source: SteelMint Research
Key drivers
With 4% INR depreciation following Yuan’s fall, imports have become costlier and this has brought some reluctance in import purchases.
Also, China had a three-day national holiday from Friday because of their military parade and thus not much activity was registered in the market on Monday. The Chinese export offers have remained unchanged since last week.
Coupled with above two factors, there is muted demand in Indian steel sector and as per trade sources, no high volume buying is being booked in the market.
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