Flat steel prices are under pressure on the grounds of plummeting sales and demand deficit in the economy. HRC trading prices in Faridabad have further corrected by INR 500-700/MT. Currently, it is offered at around INR 40,700-41,000/MT. Lack of demand and delayed payments have led to this correction.
“Liquidity crisis has led to significant slowdown in orders from our customers. Our prime customers are currently asking for extension of credit payment periods. Moreover, demand has also not improved till now. We expect prices to touch new lows this year,” said local trader based in Faridabad.
Similarly, HR Coil prices in Chennai & Ahmedabad also corrected against last week. Traders are expecting a discount from manufacturers next month. HR Coil in Chennai is assessed at around INR 41,500/MT. Whereas in Ahmedabad, it is trading at INR 42,000/MT.
International Scenario
Chinese Flat steel prices have taken a huge hit in the past few months. It has fallen from USD 525/MT to USD 470-480/ MT FoB levels. This has led to fall in Indian import offers from China. Currently, imported offers from China are in the range of USD 490-500/MT.
Declining prices in the global market have been a concern for many domestic steel manufacturers, who relied on the export market due to slowdown in the domestic demand.
A major exporter of Flat steel products quoted, “Export offers are in the range of USD 495-500/MT FoB India. But, there are no buyers at these levels.”
International prices assessed from Week 36-46
International HRC prices have seen correction in the last three months. Domestic slowdown coupled with uncertainty in the international market may keep the pricing pressure as of now. However, some trade experts believe that the depreciation in exchange rate is a positive move and this may slowdown cheaper imports. If the exchange rate continue to depreciate further, it will help domestic prices to stabilize at these levels in short-term.
*All prices in INR/MT are inclusive of Excise Duty, VAT extra
Leave a Reply