This week, the domestic HRC trades remained slow after the announcement of the price hike by major Indian steel mills. Mills increased offers of around INR 1000-1500/MT for Feb’20 deliveries. Market participants shared with SteelMint that trade inquiries remain limited as buyers seemed hesitant to make fresh bookings.
HRC prices in the trade segment remained largely stable, however, they increased in southern India. Current trade reference prices for HRC stands at INR 39,000- 40,000/MT (ex-Mumbai), INR 39,000-39,500/MT (ex-Delhi), and INR 40,000 – 40,500/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.
This week, domestic CRC prices increased by around INR 500-800/MT in major markets. Current trade reference CRC (0.9mm, IS 513) prices on a weekly premise assessed at INR 45,000-46,000/MT (ex-Mumbai), INR 43,250- 45,500/MT (ex-Delhi), and INR 45,500-46,500/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.
Trade sources based in Mumbai shared that, “ Traders are holding enough inventories in hand amid limited inquiries. Thus, buyers remained cautious about making fresh purchases.”
Further, they added that last month domestic HRC prices increased twice owing to restocking demand prevailing in the domestic market.
Thus, positive market sentiments and lesser import bookings triggered Indian steel mills to raise HRC prices in Feb. Also, the increase in iron ore prices and the recent announcement of govt policies on project allocations in budget FY’20 motivated Indian steel mills to raise prices in the domestic market.
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