After the price surge of INR 500-1,000/MT announced by Indian steel majors two weeks back, prices of flat products corrected by INR 200-500/MT in the traders market this week.
Current offers for 2.5mm HRC are assessed at INR 35,500/MT (ex-Delhi), INR 35,000-36,500/MT (ex-Mumbai) and INR 35,500-36,000/MT (ex-Chennai). All prices include excise of 12.5%.
Offers for 0.9mm CRC are assessed at INR 41,000-41,500/MT (ex-Delhi), INR 40,500-41,000/MT (ex-Mumbai) and INR 41,000 (ex-Chennai). Prices include excise of 12.5%.
As per trade sources, buyers didn’t absorb the price hike announced amid sluggish demand resulting which traders have to lower down their prices to sell the excess stock with them.
There are speculations in the market that HRC prices may be lowered down from manufacturers end in the upcoming days. This price fall may be announced in the form of rebates or discounts on bulk purchases.
Presently, the key reasons for subdued demand for steel in India are slow down in construction activities and labour migration during summers. Due to scarcity of water in the country, many construction projects have been stalled thus impacting steel demand.
Also during summers majority of labors migrate to their home town for two to three months leading to unavailability of labours.
HRC Prices as on 17 May’ 16
|
Particulars |
Prices in INR/MT |
| Ex-Mumbai | 35,500-36,000 |
| Ex-Delhi | 35,500 |
| Ex-Chennai | 35,500-36,000 |
Source: SteelMint Research
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