With the price cut of INR 1,500/MT from the manufacturers end, flat products prices have become almost equal to discounted prices of traders in secondary market.
The week 27 opened with announcement of price cut in flat products by INR 1,500/MT from the manufacturers end, according to market participants.
While Tata Steel and SAIL has cut its flat products prices by INR 1,500/MT, JSW Steel announced a price slash of INR 1,600/MT in its HRC, CRC, and plates prices.
Current offers for 2.5mm HRC (IS2062) are being heard at INR 34,200 (ex-Delhi) and INR 33,500-34,000 (ex-Mumbai). 0.9mm CRC (IS 513, Gr.o) offers are heard at INR 38,000 (ex-Mumbai and Delhi). Prices include excise of 12.5%.
Current offers for base size commercial grade plates are being assessed at INR 32,000 (ex-Delhi), including excise of 12.5%.
As reported by SteelMint last week, HRC/CRC were being sold at discounted rate of INR 1,000-1,200/MT in the retail market from the traders end. This was because of the sluggish steel demand from the end users segment.
However, with today’s price cut announcement from manufacturers, it has become clear that the domestic demand outlook for steel is quite pessimistic. This is coupled with setting in of monsoons during which pace of construction activities become quite slow.
“With the absence of real demand in domestic market and setting of monsoons, further price cut is also expected from the manufacturers in coming days”, quoted a trader based in Faridabad.
Source: SteelMint Research
Prices include excise of 12.5%
Prices are taken on monthly average basis
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