In a recent update in flat steel market, SteelMint has heard that HRC/CRC prices have increased in the range of INR 1,000-1,500/MT in secondary market.
Current 2.5mm HRC (IS2062) offers are being assessed in the range of INR 32,750-33,000/MT (ex-Delhi), INR 33,000 (ex-Mumbai) and INR 32,500-33,000 (ex-Chennai). While 0.9 mm CRC offers are heard at INR 36,500-37,000 (ex-Delhi), INR 36,000-36,500 (ex-Mumbai) and INR 35,000 (Ex-Chennai). All prices include excise of 12.55.
The key reason for surge in prices is anticipation in traders market that the Indian steel manufacturers may hike flat products prices in coming days.
“Market participants in secondary market are stocking up HRC/CRC in a fear that prices by primary producers will increase further in near term, although there is no substantial improvement in domestic demand ”, quoted a trader based in Ludhiana.
“We are not getting any products at previous rates as manufacturers are trying to create an artificial shortage of flat products in the market in order to set new benchmark of hiked rates”, said another trader based in Delhi.
MIP which was announced by Indian government on 173 steel products on 5 Feb’16 has brought in some relief to the domestic steel market as prices of flat products have increased considerably. However with absence of demand in domestic market whether prices will increase up to previous levels of a year before remains to be seen.
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