After a price hike initiated by JSW for the month of March, SAIL too has raised its prices by 1% across major trading regions in the country. Market was not expecting a price hike due to a tepid demand. However, Flat Steel manufacturers defied market expectations and hiked the prices. SAIL raised its prices by around INR 300-500/MT across India.
Ludhiana known as one of the manufacturing hub for industries like machine tools, spare parts and fabrication units saw a price hike of INR 300/MT in HRC (2.5 mm), whereas for CRC (0.9 & above) the hike applicable was INR 500/MT. Apprehension in the market still continues, since the demand has not recovered much. Prices for HRC (2.5 mm) stand at around INR 44,500/MT and for CRC (0.9 & above) it is INR 50,000/MT.
[su_quote cite=”Trader in Ludhiana”]Demand has not recovered till now; however the quantum of price hike is minimum this time. Trading volumes haven’t picked up yet.[/su_quote]
A Delhi based trader said, the increment made by SAIL is negligible in the market as they have already seen good booking at these prices. We are seeing a good demand in the market and expect the price hike to be absorbed by the market. Prices for HRC (2.5 mm) was revised to INR 44,000/MT and for CRC (0.8 & above) it is INR 50,500/MT.
[su_quote cite=”Trader in Delhi”]The price hike by SAIL is minimal and it will be absorbed by the market. We have seen a good booking even at these prices. Trading volumes are good in Delhi. Galvanized products saw a good volume of trading in the market. [/su_quote]
Prices in Ahmedabad were also raised by INR 500/MT. HRC (2.5 mm) traded at INR 44,750/MT, whereas CRC traded at INR 52,000/MT. The volume of trading was quite good as per many market participants in the market.
[su_quote cite=”Trader in Ahmedabad”]SAIL has increased prices by INR 500/MT in Ahmedabad. We have seen a good volume of trading in the market last month.[/su_quote]
Market in Hyderabad remained very volatile last week due to shortage of CRC products. As per our sources JSW has a huge export order to be fulfilled till the end of March, which has led to a shortage of Flat Steel products in this region.
[su_quote cite=”Trader in Hyderabad”]There is a shortage of CRC in the market; this has led to a steep increase in price of CRC products. Market conditions will remain unchanged till April. JSW Steel is expected to export around 2 Lakh tones of Flat products till the end of March, 2014.[/su_quote]
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Note: All prices include ED, VAT Extra.
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