Flat Steel product prices remain unchanged amidst the gloom prevailing in the domestic market. As per trade sources, most of the domestic manufacturers hold on Hot Rolled & Cold Rolled prices, as domestic demand failed to recover.
Prices were rolled over in most of the markets in North India. HRC 2.5 mm in Delhi is currently trading at INR 42,500-43,000/MT. There is mild improvement in demand for galvanized products, however volume of trading in other segments are quite low. An irate trader in Delhi stated,
“It was heard from officials that prices may increase this month; however no official confirmation for any price hike has been intimated to us till now. The logic of price hike is not at all justified given the prevailing market conditions. Demand has not improved and volumes are at all time low. Price rise is not acceptable. ”
Similarly, prices in Ludhiana have witnessed no major changes. Demand is not quite healthy in Ludhiana, which is home to many Pipe & Tube manufacturers. As per our conversation with some Pipe & tube manufacturing units, it is learnt that there has been dearth of supply from Steel manufacturers, which is a concern for many. Here, HRC 2.5 mm prices remained at INR 43,500/MT, whereas CRC 0.9 mm and above is trading at INR 49,500/MT. Some market dealers reported shortage of materials owing to less rake movements.
“There is shortage of HRC & CRC on fewer rakes from RSP. Inventory of both SAIL & Tata Steel are low. Currently, CRC products are being offered in the range of INR 49,500-51,000/MT,” stated a trader based in Ludhiana.
Import Threats
As reported earlier, the imports of Flat products particularly HR & CR have increased over past few months. Domestic prices are unlikely to see any major correction this month owing to pouring import offers. Imported offers for HRC 2.5 mm are at around USD 540-545/MT CFR India. Delivery of current orders is expected in October.
Domestic manufacturers have set their prices at par with import feasible price to prevent any further rise in imports. The price differential between domestic & imported material is quite small and this has restricted importers to book any bulk orders as of now. Importers are closely tracking the volatility in exchange rate and this will further decide how domestic prices will behave in the upcoming days.
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