After a fall in domestic HRC prices of INR 500-750/MT reported by SteelMint on last Tuesday, HRC prices this week have remained stable owing to sluggish demand in the market.
Current offers for 2.5 mm HRC (IS2062) are assessed at INR 30,500-31,000/MT (ex-Delhi), INR 31,500/MT (ex-Kolkata), INR 29,000-29,500/MT (ex-Mumbai) and INR 30,500 (ex-Chennai). All prices include excise of 12.5%.
“Although, international prices have moved up this week, there is hardly any impact on domestic prices owing to subdued demand. Prices are likely to fall in February owing to gloomy outlook and also in this month companies sign new MoU with dealers and traders”, quoted a trader based in Delhi.
With the news of MIP being delayed by the government, negative sentiments have engulfed the Indian steel market. Market participants are uncertain about the future and it is unlikely that prices would increase in near term.
“Industry players are now waiting for annual budget to be announced in February end. Whether GST (General Service Tax) will be enforced by the government and if imposed how it will impact the steel industry remains to be seen”, quoted a trader based in Faridabad.
Domestic CRC Offers
CRC offers, which registered an increase of INR 300-500/MT last week, have remained stable this week. Current offers for 0.9 mm CRC are assessed at INR 35,000-35,500/MT (ex-Delhi), INR 33,000 (ex-Mumbai) and INR 34,000 (ex-Chennai). All prices include excise of 12.5%.
HRC/CRC prices as on 19 Jan’16
|
|
2.5 mm HRC |
|
| Ex-Delhi | 30,500 – 31,000 | 35,000-35,500 |
| Ex-Mumbai | 29,000 – 29,500 | 33,000 |
| Ex-Kolkata | 31,500 | 34,000 |
| Ex-Chennai | 30,500 | 34,000 |
Prices in INR/MT
Source: SteelMint Research
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