Limited trades and lacklustre demand along with pessimistic buying sentiments lead to continual fall in domestic HRC prices.
This week domestic HRC prices soften further by around INR 500/MT in few major markets like Mumbai, Chennai and Bangalore as buyers are unlikely to make new bookings with further expectations of downside in domestic HRC prices.
Meanwhile seasonal slowdown and liquidity crunch continue to keep domestic HRC prices under pressure in the domestic steel market.
As per SteelMint price assessment trade reference prices for HRC (IS2062,2.5-8mm) is currently at INR 36,500-37,000/MT (Ex-Mumbai), INR 36,500-37,000/MT (ex-Delhi) and INR 38,000-39,000/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.
Meanwhile domestic CRC also witness downturn by upto INR 500- 750/MT this week over limited trades. Thus domestic CRC (0.9mm, IS 513) trade references prices on weekly basis are currently hovering around INR 40,500-41,000/MT (ex-Mumbai), INR 40,000-41,800/MT (ex-Delhi) and INR 41,500-45,000/MT(ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.
Other market participants based in northern region shared that, “Upside on Indian steel prices is expected as the demand starts to pick up with arrival of festive season approaching in upcoming months in domestic market.”
Also a trader based in Southern region shared that, “Rebound in domestic HRC prices is expected in month of Sep towards the end of monsoon season.”
Thus traders have adopted wait and watch mode as major Indian steelmakers are planning to revise domestic HRC prices in first week of Sep’19.
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