India: Major Steel Mills to Reduce HRC Offers as Imports Turn Cost Effective

India’s domestic HRC & CRC prices are expected to come down next month as the landed cost of imports has turned cost effective than domestic offers.

SteelMint recently learned from few market sources that,major Indian steel manufacturers are planning to cut HRC & CRC prices in domestic market for December deliveries. Amid thin trades and lackluster demand combine with competitive HRC imports to India from China, Russia and Korea leads to correction in HRC prices in domestic market.

However the quantum of reduction is yet to be decided by major steel manufacturers which will be announced shortly.

Also limited export bookings to SE Asian nations has kept export prices under pressure. Indian HRC export offers to Vietnam have come down by USD 40-45/MT M-o-M.

Meanwhile this week domestic HRC & CRC prices witnessed further correction by INR 500-1000/MT in traders market over sluggish demand.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 45,500-46,000/MT (ex-Mumbai), INR 46,000/MT (ex-Delhi) and INR 46,500/MT(ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.

Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 50,000-51,000/MT(ex-Mumbai),INR 53,000/MT (ex-Delhi) and INR 53,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

A trader based in Ludhiana mentioned that,”Domestic HRC prices are expected to fell further in the month of December over sluggish buying.Amid poor sales volume,rebates and discounts are provided to push buying”.

Landed cost of imported HRC from China to India is currently around INR 42,400-42,800/MT while domestic prices in Mumbai is around INR 45,500-46,000/MT (basic, GST @18% extra). The former is cheaper by around INR 3,000/MT.

Source-SteelMint Research