Steel companies in India are expected to cut prices of flat products on account of weak demand, falling raw material prices, rising inventory and increasing imports.
“Domestic steel prices are down by 5% quarter on quarter against Quarter1 of FY 13 and should correct further due to weak demand, inventory build-up and rising threat of imports,” a recent report suggests.
Hot-Rolled Coil (HRC) cost $635 per tonne in India at the start of this fiscal. On September 3, their price was much lower at $558. During the same period, China's export price (which is considered an international benchmark) was $693 per tonne but now is much lower at $536.
“There are no demands and the companies are already negotiating at a lower rate in the spot market. This will eventually reflect in their prices when they consider it for the current month,” a dealer in flat products said.
Further he pointed that for the last quarter, the companies had insisted on rollover of prices than cutting them officially.
On the other hand a group of dealers and traders is expecting a hike in prices as the prices have touched the minimum level already and the envelope cannot be pushed further.
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