India’s Flat Products Market Reports Minor Corrections

The country’s domestic flat steel market opened with minor downtrend of INR 200-300/MT amid sluggish demand.

Current offers for 2.5mm HRC (IS2062) are assessed at INR 33,200-33,500/MT (ex-Mumbai), INR 32,500-33,000/MT (ex-Delhi), and INR 34,000/MT (ex-Chennai). Prices include excise of 12.5%.

Offers for 0.9mm CRC (IS 513) are heard to be at INR 38,000/MT (ex-Mumbai), INR 38,000-38,500/MT (ex-Delhi), and INR 38,000/MT (ex-Chennai). Prices include excise of 12.5%.

The increased NPAs (Non-Performing Assets) especially from infra sector has resulted in liquidity crunch in the country’s domestic market as a result of which banks have become quite wary of extending loans for infrastructure projects. This has stalled various infra and power projects in the country thus, impacting steel demand from the above two key steel-consuming sectors.

Likelihood of Anti-dumping Duty

There are strong speculations in the market that MIP on flat products which is going to expire in the first week of Aug’16 will soon be replaced by anti-dumping duty on HRC, CRC, and plates.

“If anti-dumping duty is announced after the expiry of MIP, there are chances that domestic flat products prices will move up by INR 700-1,000/MT”, quoted a trader based in Mumbai.

HR/CR Prices as on 26 Jul’16

Source: SteelMint Research
Prices include excise of 12.5%