HRC/CRC prices surged by INR 1,000-1,500/MT W-o-W basis and are anticipated to increase further by INR 1,500/MT in near term.
After the Indian government announced MIP on 173 steel products on 5 Feb’16, domestic primary steel producers increased their flat products prices cumulatively by around INR 2,500-3,000/MT till date.
Current prices for 2.5 mm HRC (IS2062) are being assessed at INR 32,000/MT (ex-Mumbai), INR 31,000-31,500/MT (ex-Chennai) and INR 31,800-32,000/MT (ex-Delhi). All prices include excise of 12.5%.
While offers for 0.9mm CRC are being heard at INR 34,500/MT (ex-Mumbai), INR 35,000/MT (ex-Chennai) and INR 36,000/MT (ex-Delhi). All prices include excise of 12.5%.
However although prices have increased as an immediate effect of MIP, this uptrend wont continue for long term. This is because cheap imported material from foreign countries will continue to be available in Indian market for next two months as shipments booked before 5 Feb’16 will land only in time span of 45-60 days.
Also with intense competition in domestic market coupled with increment in production capacities by the Indian steel majors, abnormal price surge to previous levels seems to be improbable.
“Market is able to absorb increase in HRC prices by INR 1,500-2,000/MT as slight improvement can be seen on demand side, however there is not much increase in CRC prices due to availability of cheap imported material in the market”, quoted a SAIL executive.
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