India: Domestic HRC Prices Soften Over Dull Buying

This week domestic HRC market in India continued to remain dull observing marginal price cuts in few major markets. Amid inactive buying and sluggish demand prevailing in domestic market, trade sentiments have remained on lower side. Slow movement of material has kept the domestic flat steel prices under pressure.

Traders and stockiests have lowered offers as end users are reluctant to purchase the material at higher prices.

A trader based in Mumbai commented that, "further hike in domestic flat steel prices seems difficult to be absorbed in domestic market amid sluggish demand.Also liquidity crunch in western region has lead to halt in cash based transactions".

In few regions like Delhi, Faridabad and Hyderabad,domestic flat steel prices witness marginal correction of INR 500/MT.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,500/MT (ex-Mumbai),INR 46,000/MT(ex-Delhi), INR 47,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18%.

Currently trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 50,500/MT (ex-Mumbai),INR 53,000/MT (ex-Delhi) and INR 52,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

Increased HRC export bookings over limited domestic trades- Indian mill have booked sufficient quantities of HRC for exports primarily to SE Asian nations. As per reports around 130,000 MT HRC has been booked in last 20-25 days.

It will be interesting to watch what steel mills plan for next month's flat steel price considering low domestic demand and considerable export bookings.