- Trade market prices of HRC drop by INR 100/t w-o-w
- Buying interest still slow in retail segment
Domestic trade market prices of hot-rolled coils (HRC) and cold-rolled coils (CRC) witnessed a meager drop of INR 100/t ($1.28/t) this week. Although the market sentiments remain bearish amid low buying interest, sellers held prices in a few key markets.
“Concerns among buyers regarding a further drop in prices have been weighing on the trade volumes and also prices. However, the sellers too are concerned about the price levels, and most likely eyeing the price annuoncement from mills. Thus, prices have stopped falling,” said a major distributor from western India.
SteelMint’s benchmark price assessment for HRC continues to hover at INR 61,000-62,000/t ($780-793/t), while CRC prices fell by INR 500/t ($6/t) to INR 68,500-69,500/t ($876-889/t). Prices are on an exy-Mumbai basis, and exclusive of GST at 18%.
Declining export offers weigh on buying interest
Export trade has remained slow since the imposition of export duty in late-May 2022. This along with a decline in global HRC prices has weighed on offers from Indian steel producers. SteelMint’s India HRC (SAE1006) export index dipped further to $700/t FOB east coast from the previous week’s assessment of $723/t FOB.
Indian-origin boron-added HRCs are being offered at $760-770/t CFR UAE, down from the previous week’s level of $790-800/t CFR. For Vietnam, offers stand at around $710-730/t CFR, however, no buying interest has been seen.
“The buyers are looking at the trend of domestic trade market prices from the lens of global offers. This, in turn, is effecting the price momentum in the domestic market,” a distributor said.
Buyers concerned about further price drops
The end-buyers continue to go slow on procurements in the trade market segment. This has remained the major factor that has kept prices on the downtrend since early-April 2022. “Buying interest continues to remain slow, though there are inquiries but the volumes are low. Buyers continue to bargain which has been pulling prices down,” said a northern region-based distributor.
Steep drop in raw material prices
The steep decline in raw material prices is another major factor impacting the market sentiments. SteelMint’s benchmark Odisha iron ore fines (Fe62%) index has slipped to nearly the lowest level in two years. The index was assessed at INR 3,150/tonne (t) ex-mines (including royalty and other statutory cesses) on 18 June 2022. It deserves mention that the index has fallen from over INR 6,000/t in February-March.
Also, Australian premium hard coking coal (HCC), prices have dropped steeply in the past 15-20 days. Prices were assessed at $368/t FOB on 13 June – down sharply by around 30% from $525/t a month back. Prices have come down from the peak levels of $670/t in late-March. Australian premium coking coal prices have fallen to $397/t CNF India from $554/t a month back.
Leave a Reply