India: Domestic HRC Prices Slump Further as Buyers Turn Silent

This week domestic HRC prices fell further by around INR 500-750/MT against last week in major markets as buyers turned silent over weak purchases and low demand prevailing in domestic market. Thus traders continue to remain in stress over limited inquiries.

Along with this ongoing monsoon season hinders the buying activities in the domestic market.

As per SteelMint price assessment trade reference prices for HRC (IS2062,2.5-8mm) is currently at INR 34,500-35,500/MT (Ex-Mumbai), INR 34,700-35,000/MT (ex-Delhi) and INR 36,500-37,000/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Currently domestic CRC (0.9mm, IS 513) trade reference prices on weekly basis are hovering around INR 40,000-41,000/MT (ex-Mumbai), INR 38,800-40,000/MT (ex-Delhi) and INR 41,000-43,000/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Thus, as per SteelMint price assessment, domestic HRC prices hit close to 3 years low. Similar levels were last seen in the month of Sep-Oct'16 when prices were around INR 34,000/MT (ex-Mumbai).

Meanwhile, Indian steelmakers are continuously offering competitive HRC export offers to Vietnam in order to compensate surplus inventory available in the domestic market.

Few trade sources based in Bangalore region said that "the domestic HRC prices may witness further decline ahead of festive holidays starting from the first week of Oct'19 as till there are no signs of demand revival".