After announcement by major Indian steelmakers to roll over flat steel prices for July deliveries, domestic flat steel prices have witnessed correction by INR 500-1000/MT in traders market this week.
This week domestic flat steel market witness correction by INR 500-1000/MT post announcement by major Indian steel manufacturers to roll over in flat steel prices for July deliveries.Thus dwindling demand and lower sales volumes in domestic market have kept the flat steel prices on lower side.
As per SteelMint price assessment,currently trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 45,000/MT (ex-Mumbai),INR 45,300/MT(ex-Delhi) and INR 45,500/MT(ex-Chennai).The prices mentioned above are basic on cash payment excluding GST @ 18%.
Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 49,500-50,000/MT (ex-Mumbai),INR 50,500-52,500/MT (ex-Delhi) and INR 51,000/MT (ex-Chennai).The prices mentioned above are basic on cash payment excluding GST@18%.
A trader based in Ahemdabad mentioned that,”Arrival of monsoons amid dull demand and weak buying may result in downtrend in flat steel prices in near term”.
Market participants further mentioned that end users are not booking the material actively and waiting for further correction in prices.Thus manufacturers and traders remain under pressure to sell the material in domestic market.
Thus, tedious demand in domestic market has compelled the Indian steel mills to explore export options to overseas nations.In the month of June,Indian mills have actively exported significant quantities of HRC to South East Asian nations in the range of USD 610-620/MT CFR basis.
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