Indian HRC/CRC prices fall in the range of INR 500-1,000/MT due to bulk quantity of inventory stocked up by traders amid MIP anticipation.
Domestic flat steel product prices which was stable last week registered a fall once again this week. Current offers for 2.5 mm HRC (IS2062) are assessed at INR 29,250 – 29,500/MT (ex-Delhi), INR 28,500 – 29,000/MT (ex-Mumbai) and INR 30,000 – 30,500/MT (ex-Chennai).
While offers for 0.9 mm CRC are assessed at INR 34,500 – 35,000/MT (ex-Delhi), INR 33,000/MT (ex-Mumbai) and INR 33,500 – 34,000/MT (ex-Chennai). All prices include excise of 12.5%.
As per market sources, traders in secondary market have stocked up flat products inventory in last two months owing to MIP (Minimum Import Price) anticipation. However with the news of MIP not likely to be imposed in near term, market players have lowered flat product prices in order to clear off their inventories.
Although some stability can be observed in international steel prices, Indian market seems to be indifferent to global sentiments as prices here have fallen owing to sluggish domestic demand.
India’s Crude Steel Output Rises in 2015
Besides fall in crude steel output of major steel producing countries such as China, Japan and Korea, India’s crude steel output for 2015 rose by 2.6% from 87.3 MnT in 2014 to 89.6 MnT in 2015.
According to World Steel Association data, China’s crude steel output dropped by 2.3% to 803.8 MnT in 2015 against last year whereas Japan’s steel output stood at 105.2 MnT, down by 5% and South Korea’s crude steel production stood at 69.7 MnT, down by 2.6%.
World’s total crude steel production reached 1,662.8 MnT in 2015 which is 2.8% less than the previous year.
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