India: Domestic HRC Trade Market Struggles over Dull Demand

SteelMint in conversation with trade sources learned that, domestic HRC prices declined further in few key markets as the market remained struggling with inactive demand and bearish market sentiments prevailing in domestic market

On weekly basis domestic HRC prices softened by INR 500/MT.SteelMint's HRC (2.5-8mm, IS2062) trade reference prices is around INR 40,000/MT (ex-Mumbai), INR 39,500-40,000/MT (ex-Delhi) this week. Prices mentioned above are basic and extra GST@ 18% will be applicable.

Currently CRC (0.9mm, IS 513) trade reference prices is around INR 45,000/MT(ex-Mumbai), INR 42,500-44,500/MT (ex-Delhi). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Market participants shared that domestic HRC prices continue to remain under pressure as the demand is unlikely to improve in domestic market. Meanwhile approaching monsoon season will lead to slowdown in construction and infrastructure activities and weak demand from auto and construction sector have weighed down domestic steel prices.

A trader based in Delhi commented that,"Buyers in domestic market are limiting their fresh purchases which has resulted in inventory build up with traders/stockiest."

However Indian steel mills indicated roll over in flat steel prices for this month however official announcement is awaited and clarity on the same is expected to come post budget