Major Indian steel mills raised flat steel prices by INR 750-1000/MT in HRC/CRC announced by steel mills towards the beginning of this month, doesn’t seems to have been absorbed in traders market amid limited trades and dull demand from automobile sector.
This week domestic HRC prices continued to remain sluggish owing to lacklustre demand and slowdown in trading activities in domestic market.
However few trade sources shared that, increased prices were difficult to absorb in domestic market over tedious buying. Trade segment reported sluggish demand and weak buying interest amid pessimistic sentiments prevailing in domestic market.
Currently HRC (2.5-8mm, IS2062) prices in traders market is around INR 41,000-41,500/MT (ex-Mumbai), INR 40700-40,800/MT (ex-Delhi) and INR 43,500-44,000/MT(ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.
Currently CRC (0.9mm,IS 513) in traders market is around INR 46,000/MT(ex-Mumbai), INR 45,500/MT (ex-Delhi) and INR 49,000/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.
Furthermore, cheaper HRC imports arriving from Japan and Korea results to domestic HRC prices under pressure as global prices witness significant decline amid softening overseas demand.
Few market sources in conversation with SteelMint indicated lowering of HRC export offers from Japanese mills, for which announcement is expected to be made shortly. As per sources, Japanese mills may lower HRC export offers to India to USD 525- 530/MT, CFR India against last offers of USD 540-545/MT, CFR.
Also Indian steel mills are trying to sell more volumes in domestic market on the back of lower bids from end users in Vietnam.
Thus traders are expecting price support to be provided by major Indian steel mills in form of rebates and discounts in order to improve sales in domestic market.
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