The outset of a new month which usually observes a price announcement from the steel manufacturers have received no news from the steel biggies on the first day of Aug’16. The reason being confusion over MIP which is likely to expire on 4 Aug’16.
The flat products prices have remained unchanged against last week of Jul’16. 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%.
While SteelMint has heard from its sources that Steel Ministry has written to Commerce Ministry seeking extension of MIP, the dilemma will continue till final decision is announced.
Market participants believe that if MIP is extended further, then although it will be relief for the steel industry, there will not be any increment in prices as the fundamental problem of sluggish demand will continue to prevail. However, if MIP is discontinued, prices are likely to correct by INR 500-1,000/MT.
New Steel Secretary Appointed
Aruna Sundarajn, who was appointed as a Steel Secretary in Oct’15 has been replaced by Aruna Sharma as the new Steel Secretary of India on 29 Jul’16. The former is appointed as Secretary of Electronics and Information Technology.
This move came after the recent reshuffling of the Cabinet announced by the Modi government in the first week of Jul’16.
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