The week 34 has opened with increase in domestic HRC/CRC prices by INR 500-700/MT. The imposition of trade barriers by Indian government has lifted up the mood of country’s flat products market.
Current offers for 2.5mm HRC (IS2062) are being assessed at INR 34,500-35,000/MT (ex-Mumbai and ex-Delhi). While offers for 0.9mm CRC are being heard at INR 39,000-39,500/MT (ex-Mumbai) and INR 39,500-40,000/MT (ex-Delhi). Prices include excise of 12.5%.
“Although there is slight improvement in demand as monsoon’s intensity have reduced, prices have increased by higher proportion as compared to demand given complete halt in steel imports in the country for next six months”, quoted a trader based in Delhi.
Industry participants believe that demand for steel is cyclical in nature and that the steel prices remain especially low during monsoons. However, given good rains this year, country’s steel demand majorly from construction sector is likely to surge from Sept-Oct’16.
The steel ministry is emphasizing on exploring unconventional sectors to increase the domestic consumption of steel in India. This includes using steel in more productively and innovatively in construction of steel bridges, buildings, roads, railways, shipping etc.
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