Indian flat steel market is consumed with bearish sentiments as the market is facing frequent variations in the flat products prices. Traders and manufacturers are under stress owing to demand – supply mismatch in the domestic market. This week prices in traders market have corrected up to INR 1,000/MT W-o-W while it remained mostly unchanged in manufacturers market.
Current prices of HRC are assessed in the range of INR 41,500-42,000/MT (ex-Mumbai), INR 41,000-41,500 (ex-Delhi).Prices are inclusive of Excise Duty of 12.5%.
Current prices of CRC are registered in the range of INR 47,500-48,000/MT (ex-Mumbai), INR 47,000 – 48,500/MT (ex-Delhi). Prices are inclusive of Excise Duty of 12.5%.
Prices of GP/GC are heard to be in the range of INR 53,500-54,000/MT (ex-Mumbai) and INR 53,000-53,500/MT (ex-Delhi).Prices inclusive of excise duty 12.5.
Crude steel production of major Indian steelmakers have witnessed sharp increase in Q3FY17, JSW Steel has achieved highest ever crude steel output of 1.385 MnT in the month of Jan’17. However on the other hand sales have not seen the proportionate hike. Increasing production and comparatively lesser demand has raised inventory levels for traders & stockiest.
Although, slack demand in domestic market is providing enough scope to the manufacturers to bank on the export options. But still, HRC export realizations are less than current domestic offers.
On weekly basis, Indian HRC export offers have come down by USD 5-10/MT. However CRC export prices from India are hovering in the range of USD 590-600/MT,FoB India, down by USD15-20/MT as compared with previous offers.
Above mentioned factors, continue to pressurize prices and traders reported that there may be further decline in flat product prices in the near term.
Leave a Reply