Domestic HRC prices corrects by INR 500-,1000/MT in northern region whereas CRC prices remains unchanged.
After a price rally post MIP announcement in February, flat products prices almost surged by INR 2,500-3,000/MT in primary market and by INR 4,000-5,000/MT in the traders market.
Also there were speculations in the market that manufacturers would increase their flat products prices further in this week.
However, as per market sources, HRC prices have corrected by INR 500-1,000/MT in last two days given subdued demand and government’s constant watch on price hikes by the manufacturers so that prices are not raised unreasonably.
“Market is not ready to absorb hiked rates now. Domestic buyers have stopped their purchases and are waiting for some price corrections. Thus prices have retreated by INR 500-1,000/MT in northern region whereas in western and southern region there is only marginal correction of INR 50-100/MT”, quoted a trader based in Delhi.
Currently 2.5 mm HRC is being assessed at INR 33,700 (ex-Delhi), INR 34,500 (ex-Mumbai) and INR 34,700 (ex-Chennai). CRC (0.9mm) prices have remained unchanged at INR 39,000 (ex-Delhi and Mumbai) and INR 38,500 (ex-Chennai). Prices include excise of 12.5%.
New Import Duty Likely to Stop Illegal Trading
After the MIP announcement although there have been some restriction in imports, chances of black money entering in to India through illegal routes have increased.
The importers buying in bulk quantity may over-invoice their purchases and transfer the differential money through hawala route.
A hawala route is an underground banking system based on trust whereby money can be made available internationally without actually moving it or leaving a record of the transaction.
Thus in order to prevent this, commerce ministry has written to revenue ministry for levy of an additional duty equivalent to the price differential of MIP and import price. This would in a way prohibit imports completely.
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