Scarcity of water in the country and unavailability of labour during summers bears an adverse affect on flat products demand and prices.
After a price correction of INR 500/MT last week, Indian HR/CR prices have remained unchanged this Tuesday 26 April.
Currently 2.5mm HRC is assessed at INR 34,500-35,000/MT (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%.
Subdued Demand
There is no improvement in domestic demand and hence prices have remained the same this week.
The key reasons for slack in demand is unavailability of labour during summer season and scarcity of water required for construction activity.
During summers, labours usually migrate to their home towns for one to two months and return at work only at the start of rainy season. Also currently, many states in India are facing drought like situation which has adversely affected construction activities here which requires huge quantity of water.
Possible Hike in Flat Product Prices
If trade sources are to be believed, manufacturers are likely to increase domestic flat products prices by INR 500-1,000/MT on 1 May’16.
The probable increase in prices is backed by drastic surge in global flat products prices. HRC prices in the global market have crossed MIP rate of USD 455/MT. The landed cost of HRC imports is higher than the domestic prices, thus giving scope to manufacturers to increase their prices further.
HR/CR Prices as on 26 Apr’16
| Particulars | 2.5mm HRC Prices | 0.9mm CRC Prices |
| E-Mumbai | 34,500-35,000 | 39,000-39,500 |
| Ex-Delhi | 34,500-35,000 | 39,000-39,500 |
| Ex-Chennai | 35,500 | 38,500-39,000 |
Source: SteelMint Research
Leave a Reply