India: Domestic HRC Prices in Traders Market Soften; Mills Eye Hike for Mar'20

Indian HRC prices in the trade segment fell by around INR 250-500/MT W-o-W on slow offtake in demand. Also, sluggish trades and weak consumer buying collectively pulled down prices in the domestic market.

-- Current trade reference prices for HRC (2.5-8mm,IS2062) on a weekly premise stands at INR 38,000-38,750/MT (ex-Mumbai), INR 38,250-38,500/MT (ex-Delhi), and INR 39,000-40,000/MT (ex-Chennai). However, prices were stable in Delhi and Ludhiana markets. Prices mentioned above are basic, and extra GST@ 18% will be applicable.

-- Current trade reference CRC (0.9mm, IS 513) prices on a weekly premise assessed at INR 44,500-45,500/MT (ex-Mumbai), INR 42,200- 45,000/MT (ex-Delhi), and INR 44,500-46,000/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

"Buying in the end user's segment has remained low while the increased inventories in hand with traders are putting prices under pressure", SteelMint learned from a trader based in Mumbai.

Mills eye price hike in flats for Mar'20- SteelMint in conversations with market participants learned that major Indian steel manufacturers are planning for another hike by around USD 500-750/MT for Mar'20. Sources claim that demand from OEM's and projects has been decent however, there is selling pressure in the trade segment. Official price hike announcement from mills is expected to be out in the first week of Mar'20.