SAIL Rollover its Flats Prices for November

HRC/CRC prices have been kept unchanged by SAIL in the start of November against the backdrop of stability in imported offers.

This leaves 2.5 mm (IS2062) HRC prices at INR 32,500/MT (ex-Delhi), INR 33,000/MT (ex-Ludhiana) and INR 32,500-33,000/MT (ex-Chennai). All prices include excise of 12.5%.

While 0.9 mm CRC is being offered in the range of INR 36,000-37,000/MT (ex-Mumbai), INR 37,000-37,500/MT (ex-Delhi) and INR 37,000 (ex-Hyderabad). All prices include excise of 12.5%.

SAIL has increased its HRC prices by INR 700/MT in the start of October following announcement of 20% provisional duty on HRC in mid Sep’15. However by October end, its prices corrected again by INR 500-700/MT.

The company’s pricing policy is within market expectations as the flats prices in international market have been relatively stable in the start of November.

However there has been price cut of INR 1,000/MT in HRC’s retail market and prices for 2.5 mm (IS2062) HRC is being assessed in the range of INR 31,000-31,500/MT (ex-Mumbai; including 12.5% excise).

SteelMint has heard from market sources that a price cut is possible by Indian steel mills in the mid of November post Diwali festival. This is majorly because Indian steel industry is still facing tough competition from cheaper imports especially from China.

The price parity between domestic and imported offers is yet to be achieved.As assessed by SteelMint, the landed costs of HRC imports from China is cheaper by INR 2,500-3,000/MT (USD 40-45/MT) against domestic prices.