India: Limited Deals Turn HRC Trade Market Passive

This week Indian HRC market remained bearish on concerns of coronavirus disturbing the buying pattern and material logistics in a few key markets. Also, gradual winding up of business activities as precautionary measure led to poor demand and weak purchases among buyers and end-users.

-- SteelMint's current trade reference prices of HRC (2.5-8mm, IS2062) assessed at INR 38,000-38,500/MT (ex-Mumbai), INR 38,000-38,500/MT (ex-Delhi), and INR 38,500-40,000/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

-- SteelMint's assessment for trade reference prices of CRC (0.9mm, IS 513) stands at INR 44,000-45,000/MT (ex-Mumbai), INR 42,200-44,500/MT (ex-Delhi), and INR 43,500-45,500/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

-- SteelMint learned from its prominent market participants that, "sluggish demand and limited buying amid fears of coronavirus spreads lead to an increase in inventories among traders and stockists. This is likely to pull down the HRC prices in the near term."

-- Trade sources are expecting from major mills to provide support in terms of rebates and discounts in order to improve the sentiments in the domestic market.