Domestic HRC Prices correct by 4-6% in Two Months

HRC prices have steeply corrected in the last two months. HRC’s trading prices are depreciated by 4-6% across major markets in India. Meanwhile, there are pouring offers of HRC from Russia owing to depreciation in Russian currency.

HRC prices have corrected by INR 1,500-2,000/MT in the domestic market. Although, domestic manufacturers haven’t declared any price cut officially, discounts have been offered at Traders’ & Dealers’ level. As per traders, currently HR Coil in Ludhiana is trading at INR 40,500- 40,700/MT. Demand from the industry has been at all time low and liquidity deficit has prevented traders from taking any advance position.

Similarly, HR Coil in Faridabad is trading at INR 40,300-40,700/MT. One of the traders in Faridabad mentioned,

“There has been oversupply of HR Sheets & Coils from Bhushan Steel at much cheaper rates as compared to normal trading prices. These offers have affected sales as well as prices, to certain extent.”

HRC is currently trading at around INR 39,500-40,500/MT in Mumbai. Domestic prices will continue to remain under pressure owing to cheaper import offers from China & Russia. Russian currency, Ruble, has depreciated by almost 45% in past three months.

An importer in Mumbai said “Sharp corrections in Russian currency, Ruble has led to increasing import offers from Russia. Currently HRC offers from Russia is at USD 495/MT CFR India”

Total Flat Steel imports between April to October this year has increased by 17% as compared to the same period last year.

International Scenario

Flat Steel prices in international markets have taken a dip in the past 2-3 months. A spokesperson from an international trading house while talking to SteelMint said, “Indian HRC Export offers are hovering at USD 495-500/MT FOB India West coast. However, buying seems to be weak due to lower offers from Chinese & Russian manufacturers.” Small deals from India were reported at these price levels.