Imported Cargoes Arrival may Result in Price Cut by Major Indian Flat Steel Makers

Indian flat steel makers who had announced a roll over in prices in May'17 are likely to announce price cut for Jun'17 to match up with the arriving imported cargoes.

SteelMint has also acknowledged from the market sources that around 2 lakh tonnes of HRC was booked from Japan,Korea and China in the range of USD 440-490/MT CFR Mumbai. However the bookings were already made in the month of Apr'17 and it will arrive soon in the mid of June'17.

As a result, landed cost of imports is cheaper compared to Indian flat products prices,hurting the profit margin of Indian steel mills and compelling them to cut prices by INR1,000/MT in the month of June'17.

Also,Indian flat steel market is facing downstream trend this week as the dull and monotonous demand prevail in the domestic market.Surge in HRC imports,dull domestic demand and entry of GST has led to constant fall in domestic flat product prices in traders market. HRC prices in Delhi have come down by INR 1000-1500/MT in May'17.

A trader based in Delhi quoted"Flat steel traders in the domestic market have also started to liquidate the current inventories and are reluctant to purchase new stock as it seems risky for them since the affect of GST in Indian steel market is still awaited".

Currently HRC (IS2062) 2.5mm-8mm are assessed in the range of INR 38,000/MT (ex-Mumbai), INR 38,500-39,000/MT (ex-Delhi) and INR 39,500/MT (ex-Chennai). Prices are inclusive of Excise duty of 12.5%.

Currently CRC (IS513) 0.9mm is hovering in the range of INR 45,500-46,000/MT (ex-Mumbai), INR 43,500-44,000/MT (ex-Delhi) and INR45,000/MT(ex-Chennai).Prices are inclusive of Excise Duty of 12.5%.

However Indian manufacturers are likley to announce domestic flat products prices for Jun'17 in coming days.