By the end of Feb’17,flat steel market has witnessed various fluctuations in traders as well as in manufacturers market. After the hike of INR 3000/MT in the start of January, prices have came down to Dec’16 levels. Hence, Indian Flat steel market is waiting for further price revision for the month March.
Currently HRC (IS2062) 2.5mm-8mm is assessed in the range of INR 40,500-41,000/MT (ex-Mumbai),INR 40,000-40,500/MT (ex-Delhi) and INR 40,500/MT (ex-Chennai).Prices are inclusive of excise duty 12.5%
Currently CRC (IS513) 0.9mm is hovering in the range of INR 46,000-46,500/MT (ex-Mumbai),INR 46,000-47,000/MT (ex-Delhi),and INR 46,000-47,000 /MT(ex-Chennai).Prices are inclusive of excise duty 12.5%.
Prices of flat steel have seen plummeting in the domestic market owing to dull and mute demand prevailing in the domestic market. Moreover, flat steel prices have come down to the Dec ’16 levels and have been declined up to INR 3,000-3,500/MT till date.
According to a flat steel manufactures based in southern India “There are chances of roll over in flat steel prices for next month deliveries. However discounts of around INR 500-1,000/MT may come in form of quantity discounts on bulk purchases. March being fiscal year end, companies will focus to clear inventories so as to boost sales.”
Few trade sources are expecting stability in prices over dull demand until Holi festival. However others are anticipating some price cut as March being end of accounting year will force companies to clear inventories.
It is to be noted that flat steel manufacturers were seen offering rebate of INR 1,500-2,000/MT in Feb’17. However exports market has somehow reduced sales pressure, although realizations is still low. In traders market, prices fell sharply over increased inventories.
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