Amid sluggish trades and low buying interest in domestic market, prices declined further in traders market by INR 500-1000/MT this week. As per the data maintained with SteelMint, domestic HRC prices in traders market is hovering close to an year low. Similar price levels were recorded in the month of Jan-Feb’18.
Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 43,000-43,500/MT (ex-Mumbai) and INR 42,500-43,000/MT (ex-Delhi). The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.
Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 48,500-49,500/MT(ex-Mumbai) and INR 48,500-50,000/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.
Towards end of Jan’18, HRC trade prices in Mumbai were assessed at INR 42,800/MT levels. Thus prices are approaching to 1-year low.
Thus cost effective imports following significant decline in global prices in turn led to weakening HRC prices in domestic market.
Secondly amid downtrend in domestic HRC prices, buyers are hesitant to purchase in expectations of further decline. Thus subdued trades results to bearish sentiments in domestic market. Indian steel mills are providing considerable discounts and rebates to buyers in order to push buying in domestic market.
Meanwhile raw material prices like iron ore has also showing downtrend. India’s largest miner – NMDC has already slashed iron ore prices twice in the month of Dec’18.
Thus it is will be interesting to see that what price revision will major Indian steel manufacturers make for Jan’19 deliveries ?
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