India: Premium on Thinner Gauge HRC Increases on Low Availability

SteelMint learned from market sources that thin gauge HRC are trading at higher price. As per market sources report, material availability for thin gauge HRC is less. It is known that productivity moves down in making thinner gauge HRC. As mills are expanding their output so they are increasing on thick gauge HRC.

Also, Vietnam which has been the major destination for Indian flat steel exports in 2017 majorly imports HRC of around 2-2.5 mm. According to data maintained with SteelMint, in CY17 (till Oct'17) India has exported 1.36 MnT flat steel to Vietnam.

As per trade sources, Indian steel mills have pending export orders to Vietnam. Thus material availability of thin gauge HRC has come down in domestic market. Also transportation issues in few markets has limited timely material availability to buyers. All these factors have resulted in temporary shortage of thin gauge HRC in Indian domestic market.

In Faridabad, trade reference prices for 2 mm HRC is around INR 44,500/MT and 1.5 mm is around INR 46,000/MT. While thick gauge HRC (6-10 mm) is trading around INR 43,500/MT. Prices mentioned are basic, GST @ 18% extra.