Indian HRC Prices Strengthen amid MIP Anticipation,CRC Prices Stable

Domestic HRC prices increased in the range of INR 750-1,000/MT this week, particularly in country’s western region.

The anticipation of Minimum Import Price (MIP) has brought some respite to the troubled domestic steel industry. As per the market sources, India’s steel major, JSW Steel have hiked its HRC prices specifically for its western zone.

Current offers for 2.5 mm HRC (IS2062) is being assessed in the range of INR 30,000-30,500/MT (Ex-Mumbai), INR 31,000 (Ex-Chennai), INR 31,250 (Ex-Delhi) and INR 31,500/MT (Ex-Kolkata). All prices include 12.5% excise.

JSW has increased its prices in west zone because large quantity of imports land in western ports. With MIP anticipation, traders there have stopped booking imports and have started stocking up domestic HRC.

SteelMint has heard that MIP proposal had been sent to PMO (Prime Minister Office) and also Commerce Minister, Ms. Nirmala Sitharaman had met representative of steel mills association. Thus MIP is likely to implemented very soon.

With MIP imposition, a floor price will be decided by the government below which imports will not be allowed in to the country.

CRC Prices Stable

Domestic CRC prices have been stable since last one month. Current offers for 0.9 mm CRC are assessed at INR 33,000/MT (ex-Mumbai), INR 33,500/MT (ex-Chennai), INR 33,500/MT (ex-Kolkata) and INR 35,750/MT (ex-Delhi). All prices include 12.5% excise. However as per trade sources, hike in CRC prices  is also expected in the coming month.

Source: SteelMint Research