India: Domestic HRC Prices Unmoved; Trade Sentiments Remain Weak

Post Diwali holidays, Indian HRC and CRC prices have remained unchanged amid bearish market sentiments, dull trades on liquidity issues and decline in auto sales volumes.
However in the beginning of the month major Indian manufacturers rolled over flat steel prices for November deliveries amid slack buying.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 46,500/MT (ex-Mumbai), INR 47,000/MT (ex-Delhi) and INR 47,500/MT(ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.

Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 52,500/MT (ex-Mumbai),INR 53,000-53,700/MT (ex-Delhi) and INR 53,000-53,500/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Few trade sources commented,"Constant decline in sales volumes amid sluggish demand prevailing in domestic market post Diwali holidays.Further they shared that decline in auto sales also affected flat steel prices in domestic market".

Auto sales decline during Diwali festive season- As per market reports,auto sector witnessed subdued demand and decline in sales volume by around 20% during festive season starting from Navratri to Diwali in domestic market. Meanwhile rise in fuel prices,liquidity crunch and uptick in cost of loans collectively hit the sales in auto sector this Diwali.Thus customers have postponed their purchases amid increased cost.