This week domestic HRC trade prices in trade segment have remained unchanged across major markets, while the trades continue to remain slow. Meanwhile, the market participants are awaiting price announcements from major steel producers for Jul’20 deliveries which is expected to be out in couple of days.
Current HRC & CRC prices of major markets –
–Steel Mint’s assessment for HRC (IS 2062, 2.5 – 8mm) for trade segment stands at INR 35,500-36,000/t (ex- Mumbai), INR 35,500-35,800/t (ex-Delhi), and INR 37,000-38,000/t (ex-Chennai).The prices mentioned above are basic, and extra GST @18% is applicable.
–Meanwhile, CRC (0.9 mm IS513 GR) prices are assessed at INR 40,000-42,000/t (ex- Mumbai),INR 41,000-42,000/t (ex- Chennai) and INR 40,000- 41,000/t (ex-Delhi).The prices mentioned above are basic, and extra GST @18% is applicable.
Comments from market participants
Disruptions in payment, slow release of funds from the MSMEs, and weak demand in the market continue to keep the trade activities low, shared a few northern India based sources.
However, market sources in Mumbai shared that “domestic HRC has hit the lowest and now prices are expected to move up and traders may resume restocking activities. Also the pipes & tubes segment is doing well. However, the auto and OEM’s sector is still facing severe challenges.”
Meanwhile, announcements of containment zones have also hampered the smooth functioning of many downstream industries especially medium and small scale enterprises in turn affecting HRC trade volumes in the domestic market.
Outlook – If sources are to be believed, major steel mills are planning to announce a hike in HRC prices by around INR 500-1000/t considering hike in global offers. However official announcement on the same is still awaited.
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