Indian flat steel market has remained steady this week with minor corrections seen in few markets. Market participants are expecting drop of INR 500-1,000/MT owing to dull demand spread in the domestic market. Anemic demand coupled with entry of GST in the Indian flat steel market is likely to affect the domestic flat steel prices to some extent.
With an aim of eliminating cascading of taxes, Indian government has come out with one indirect tax for whole nation – “GST-Good and services tax”. The countdown for the GST- has started and Indian government is planning to introduce it on 1st July’17 seems promising. However further clarifications on the GST implementation are yet to be out.
However market participants also mentioned that “Entry of GST in the Indian flat steel market will surely impact the sector, however further clarity on the same is still awaited.”
Currently HRC (IS2062) 2.5mm-8mm are assessed in the range of INR 39,000/MT (ex-Mumbai), INR 39,500-40,000/MT (ex-Delhi) and INR 39,800-40,000/MT (ex-Chennai). Prices are inclusive of Excise duty of 12.5%.
Currently CRC (IS513) 0.9mm is hovering in the range of INR 45,000-45,500/MT (ex-Mumbai), INR 43,500-44,000/MT (ex-Delhi) and INR45,000-45,500/MT(ex-Chennai).Prices are inclusive of Excise Duty of 12.5%.
Traders are reluctant to hold inventories which has resulted in panic sales. Beside this,entry of GST has also led to ambiguity about price changes that are likely to come up post GST implementation. .
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