India: Domestic HRC Prices Slump Further Over Tepid Demand

Higher inventory levels along with tepid demand over inactive trades lead to continual decline in HRC prices in domestic market.

This week Indian HRC prices witness further slump by upto INR 500/MT owing to limited buying hovering in domestic market.Weak purchases along with gloomy market outlook continue to pressurize HRC prices in domestic market.

As per SteelMint price assessment trade reference prices for HRC (IS2062,2.5-8mm) is currently at INR 37,000-37,500/MT (Ex-Mumbai), INR 36,500-37,000/MT (ex-Delhi) and INR 38,500-39,500/MT (ex-Chennai).Prices mentioned above are basic and extra GST@ 18% will be applicable.

Meanwhile trade reference prices of CRC (0.9mm, IS 513) prices on weekly basis are currently hovering around INR 42,500-43,000/MT (ex-Mumbai),INR 40,000-42,000/MT (ex-Delhi) and INR 43,000-44,000/MT(ex-Chennai).Prices mentioned above are basic and extra GST@ 18% will be applicable.

Traders in northern region shared that,"Market demand remains bleak at the moment which continues to exert pressure on prices".

Indian steel mills are trying to liquidate inventory by offering discounts and rebates to escalate buying in domestic market. Also major steelmakers are actively exporting in order to offload surplus output to overseas nations.

However few industry participants shared with SteelMint that domestic steel prices are expected to recover in upcoming months over increased govt. expenditure on infrastructure and easy credit norms to push buying in auto sector.