After the price hike of about INR 5,000-6,000/MT post MIP announcement, Indian flat products market have become quite dull with no movements in prices.
Current offers for 2.5mm HRC (IS2062) are assessed at INR 35,000-35,500/MT (ex-Delhi), INR 34,500-35,000/MT (ex-Mumbai) and INR 36,000-36,500/MT (ex-Chennai). All prices include excise of 12.5%.
Offers for 0.9mm CRC (IS 513 Gr.O) are assessed at INR 39,500-40,000/MT (ex-Delhi), INR 40,000-40,500/MT (ex-Mumbai) and INR 40,000 (ex-Chennai). Prices include excise of 12.5%.
Manufacturers likely to announce discounts
Last price hike was announced by Indian steel mills in the first week of May, post which prices have remained unchanged from manufacturers’ end.
However, if market sources are to believed Indian manufacturers are likely to announce discount of INR 1,000/MT on flat products as the demand from various sectors is quite muted and buying interest is also weak.
In secondary market, traders and dealers are selling their products at discounted rates of INR 1,000-1,500/MT, in order to clear off their excessive stocks purchased before financial year closing in March 2016.
Impact of global steel price plunge
Three months back in Feb’16, when prices soared in the international market, Indian mills shifted their focus to exports due to good sales realizations from export market. This move also meant at creating tight supply situation in the domestic market so that domestic prices can be pushed up further.
Nonetheless, export offers of China and other countries started retreating once again in May’16 forcing Indian players to move out of export market due to poor sales realizations. Thus, at present Indian steel market is once again dealing with poor demand, excessive supply, and probable fall in prices situation.
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