This week domestic HRC trade prices fell further by around INR 250-500/t owing to lower sales, liquidity issues, and sluggish demand hovering in the domestic market.
Current HRC & CRC prices of major markets –
—SteelMint’s assessment for HRC (IS 2062, 2.5 – 8mm) for trade segment stands at INR 35,500-36,000/t (ex- Mumbai), INR 35,500-35,800/t (ex-Delhi), and INR 37,000-38,000/t (ex-Chennai).The prices mentioned above are basic, and extra GST @18% is applicable.
–Meanwhile, CRC (0.9 mm IS513 GR) prices are assessed at INR 40,000-42,000/t (ex- Mumbai),INR 41,000-42,000/t (ex- Chennai) and INR 40,000- 41,000/t (ex-Delhi).The prices mentioned above are basic, and extra GST @18% is applicable.
Comments from market participants
Market sentiments remain dull, no restocking by traders. Also, 30-40% of trade will continue to weigh on domestic prices, shared by a major distributor of HRC based in the western region.
Also, Chennai is under complete lock-down for 12 days from 19 Jun to 30 Jun amid rising cases of corona-virus. Also Hyderabad and Bangalore regions continue to remain affected. Thus sales levels continue to remain negative, shared by sources based in Southern India
Meanwhile, domestic HRC prices continued to remain under pressure due to
—Mid-size enterprises are unable to release their previous payments from creditors
–Less working hours in financial sectors and banking institutes hamper the trade volumes due to liquidity issues
–End consumers are facing a severe shortage of labourers in their factories and warehouses.
–Heavy rains in July-Aug will continue to weigh on domestic HRC prices.
–Ailing auto sector is struggling to recover amid a slowdown in terms of volumes
Outlook: Major steel mills may announce price revision next week for July deliveries however trade sources are expecting rebates or discounts to escalate buying.
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