India: Some Tier-I mills hike list prices of HRC, CRC; trade-level prices remain range-bound
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Private steel mills have announced price hikes of INR 500-1,100/tonne (t) ($6-13/t) for June'24 compared to May levels, while a PSU steel major and another private mill have rolled over prices.
Following the announcement, the list prices set by mills for HRC (2.5-8mm, IS2062 Gr- E250 BR.) and CRC (0.9mm, IS513 CR 1) for June sales stood at INR 54,200-55,750/t ($650-668/t) and INR 59,800-62,250/t ($717-746/t), respectively, excluding GST at 18%. However, the list prices of some private mills remained undisclosed.
Trade market prices
The monthly average price of trade-level HRC has registered a m-o-m increase of INR 1,500/t ($18/t) to reach INR 54,100/t ($648/t) in May as against the previous month's INR 52,600/t ($630/t) exy-Mumbai. However, CRC has witnessed a drop of INR 200/t ($2/t) m-o-m settling at INR 61,000/t ($731/t) in May compared to the preceding month's INR 61,200/t ($734/t) exy-Mumbai.
In recent assessments, HRC and CRC prices had remained rangebound prior to price announcements by the mills amid the declaration of election results. However, HRC prices in Hyderabad rose by INR 1,300/t ($16/t) to INR 53,500-54,500/t ($641-653/t) in reflection of the expected list price hike by mills.
Meanwhile, BigMint's benchmark assessments for HRC ranged between INR 53,500-54,500/t ($641-653/t). However, CRC prices fell by INR 200/t ($2/t) hovering around INR 60,000-61,500/t ($719-737). These price levels are rangebound compared with the previous assessment carried out on 19 April. Prices are on an exy-Mumbai basis for cut-to-length (CTL) form and exclude GST at 18%.
Market updates
1. Trade market rangebound: The traders' market exhibits persistent sluggishness due to weak demand. Market participants have tried to concurrently increase their offers, citing supply constraints and anticipating a hike in prices by the mills. However, buyers are resisting price hikes, negotiating for lower prices and opting for need-based purchases.
"Market demand is currently subdued," observed a market participant. "Buyers are focused on fulfilling immediate needs via small deals and negotiating aggressively on list prices despite recent attempts by sellers to raise offers."
"Sme mills have implemented price hikes and rumors suggest that others will hike prices, too. This aggressive pricing strategy may backfire, potentially incentivizing a return to imports," the source cautioned.
2. Export, import trends: India's imports of bulk HRC and plates have edged up, as per recent vessel line-up data maintained with BigMint. On the other hand, exports have declined steadily.
Indian steel mills have maintained their hot-rolled coil (HRC) export offers to South-east Asia, the Middle East, and Europe this week. Weak global market sentiment, characterised by limited demand and a decline in Chinese SHFE HRC futures, continues to dampen export activity.