Indian Flat Products Prices Correct in Retail Market

Sluggish demand coupled with high inventories with traders lead to price correction of INR 500/MT in HR/CR prices this week.

After the price hike announced by Indian manufacturers in the first week of April, flat products prices had remained unchanged in last two weeks.However, this week prices have corrected by INR 500/MT in the traders market.

Currently 2.5mm HRC is assessed at INR 34,500-35,000 (ex-Delhi and ex-Mumbai), and at INR 35,500/MT (ex-Chennai), prices include excise of 12.5%.

Whereas, 0.9mm CRC is assessed at INR 39,000-39,500 (ex-Mumbai and ex-Delhi) and at INR 38,500-39,000 (ex-Chennai), prices include excise of 12.5%.

There is so much of slack in demand that many traders have lowered down their margins in order to clear off their excessive inventories purchased in the month of March.

“A further price increase was expected from the manufacturers in mid April. However, due to slack in demand, prices have corrected”, quoted a trader based in Faridabad.

Another trader based in Mumbai said, “Due to financial year closing in March, dealers and traders have booked excessive material with them. But due to sluggish demand, material which was booked in March has not been sold yet resulting in drop in prices”.

Against the backdrop of subdued demand, market participants are even expecting further price correction and discounts on bulk purchases from manufacturers end in the upcoming month.

HR/CR Prices as on 18 Apr’16

Prices include excise of 12.5%
Source: SteelMint Research