India: HRC Trade Segment Awaits Price Announcement from Mills

As per recent conversation with trade participants, domestic HRC trade prices move down further by INR 500-1000/MT on weekly basis over thin trades and lesser buying inquiries in the domestic market. However, the trade segment continues to await a price announcement from Indian mills which is expected in the next couple of days.

As per SteelMint price assessment current trade reference prices for HRC (IS2062,2.5-8mm) is at INR 34,500-35,000/MT (Ex-Mumbai), INR 34,500-35,000/MT (ex-Delhi) and INR 35,500-36,500/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Currently domestic CRC (0.9mm, IS 513) trade reference prices on weekly basis are hovering around INR 40,000-40,500/MT (ex-Mumbai), INR 38,800-40,000/MT (ex-Delhi) and INR 40,500- 41,500/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Thus, as per SteelMint price assessment, domestic HRC prices hit close to 3 years low. Similar levels were last seen in the month of Sep-Oct'16 when prices were around INR 34,000/MT (ex-Mumbai).

Market participants in Mumbai region commented that "Domestic HRC prices shall witness further downside this month owing to lesser working days ahead of festive season, liquidity issues & dull domestic market sentiments."

On the other side, a major manufacturer commented that "We expect uptick in domestic steel prices post Diwali holidays as inventories of major steel mills have eased out over aggressive exports to overseas nations and curtailed production."