SteelMint in conversation with market sources learned that major Indian steelmakers are in discussions to increase HRC & CRC prices by around INR 750-1000/MT (USD 12-14) in domestic market for the month of February.
Since Indian steel mills are speculating that global flat steel prices will increase post Chinese Lunar New Year Holidays which is scheduled in first week of Feb, mills are expecting optimistic sentiments in domestic market too. Meanwhile higher global prices may result to reduction in new import volumes by Indian re-rollers which gives enough room to increase flat steel prices in domestic market.
Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 40,000/MT (ex-Mumbai) and INR 40,500-41,000 /MT (ex-Delhi). The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.
Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 45,500/MT (ex-Mumbai) and INR 45,000-47,000/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.
In the month of January,Indian steel mills had rolled over flat steel prices amid cost effective imports and sluggish trades in domestic market. However mills have provided discounts and rebates to escalate buying.
However increase in HRC prices by major steel manufacturers in upcoming month will be accepted in domestic market or not remains a question considering dull domestic demand, ongoing limited trades and falling demand from automobile sector.
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