India: Domestic HRC Trades Weaken Over Subdued Demand

This week Indian HRC prices have softened over dull trades and sluggish buying prevailing in domestic market. Few traders reported marginal fall in HRC prices this week amid tedious buying while in other regions prices have remained range bound.

Current trade reference prices in traders market for HRC (IS2062) 2.5 mm-8 mm is around INR 42,000-42,500/MT (ex-Mumbai) and INR 42,500/MT (ex-Delhi) and INR 45,000/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 46,500-47,000/MT (ex-Mumbai), INR 47,250-49,000/MT (ex-Delhi) and INR 51,000/MT (ex-Chennai). The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

A trader based in Mumbai commented that. "Domestic HRC trades remained slow ahead of financial year end and traders seem reluctant to forward left over stocks in new fiscal".

Meanwhile few other traders in northern region shared that, "Announcement of general elections which will be held in Apr'19 and the upcoming festive Holi holidays have weakened trades in domestic market."

In the beginning of this month major steel mills have raised HRC & CRC prices by INR 1000-1500/MT in line with higher raw material cost and upsurge in global steel prices.