India: Moderate trades keep domestic HRC prices stable

This week domestic HRC and CRC trade prices remained largely stable, except in Faridabad where prices increased by INR 200-300/t w-o-w. The major steel mills announced a price hike by INR 1,000-2,500/t last week for Oct deliveries.

Traders and stockiest of different regions shared that "momentum has slowed down a bit and buying interest at higher prices has slightly softened".

SteelMint's benchmark assessment for commercial-grade HRC stands at INR 42,000-43,500/t and CRC INR 53,000-53,500/t (exy Mumbai), stable against last week.

SteelMint price assessments of key trade markets

• HRC (IS 2062, 2.5 - 8mm) prices are assessed at INR 43,500-44,000/t (exy-Delhi) while INR 43,500-44,500/t (exy-Chennai).
  
  
• CRC (0.9 mm IS513 GR) are currently seen at INR 53,000- 54,000/t (exy-Delhi) and (exy-Chennai).
  
  
• Prices do not include GST extra @18%.
  
  

Will higher HRC prices sustain in the market?

1. Supply concern expected to ease from Nov- Trade participants shared with SteelMint that mills will try to complete their backlog orders till Oct. Also currently mills are not offering HRC for exports in the overseas market. Thus mills will shift their focus on supplies to the domestic market. The easing of supplies in the domestic market may result in a fall in domestic HRC prices.

2. Manufacturers' prices continue to remain less attractive- Major steel mills have sharply raised HRC & CRC prices for the past few months. However, traders are now less likely to make fresh purchases at higher prices. Also, few market sources are of the opinion that "further hike in prices seems difficult and prices may remain under pressure after 15th Oct".

Outlook - Thus domestic HRC prices may witness some correction. However, the absence of HRC import bookings may keep prices supported. On other other hand, CRC prices are expected to remain moderate amid strong demand from the auto and white goods sector.