India: Trade-level HRC, CRC prices fall by up to INR 1,400/t ($17/t) m-o-m in July'24

India's monthly average trade level prices of hot-rolled coils (HRC) in the cut-to-length (CTL) form dropped by around INR 1,400/t ($17/t) m-o-m in July 2024. The monthly average of benchmark assessment HRC (2.5-8mm / CTL, IS2062, Gr E250 Br) exy-Mumbai stood at INR 52,400/t ($626/t) in July 2024, as against INR 53,800/t ($643/t) a month ago.

On the other hand, the monthly average prices of benchmark cold-rolled coils (CRC, 0.9mm / CTL, IS513 CR1) exy-Mumbai dropped by around INR 700/t ($8/t) m-o-m to INR 59,600/t ($712/t) in July.

Market updates:

Mills reduce list prices for early July 2024 sales: The primary mills producing HRCs and CRCs announced a reduction in their list prices in the first week of July 2024. The decision was in response to the increasing preference for competitively priced imported alternatives and the end-buyers breaking their bulk procurement volumes to the urgently needed quantities. After the announcement, the HRC list prices had stood at INR 53,000-53,500/t ($635-641/t) ex-Mumbai, while those of CRCs (0.9mm, IS513 CR1) are currently valued at INR 60,000-60,500/t ($719-725/t) effective from 1 July 2024.

However, this price reduction didn't excite buying from the distributor or participants at the lower tiers in the retail network.

BigMint's benchmark evaluation(bi-weekly) for HRC (2.5-8mm / CTL, IS2062, Gr E250 Br) exy-Mumbai fell to INR 51,300/t ($613/t) as on 30 July 2024, as against INR 53,400/t ($638/t) assessed on 2 July 2024. Taking note of the same period, CRC (0.9mm / CTL, IS513 CR1) exy-Mumbai prices dropped to INR 58,900/t ($703/t) towards the end, compared with INR 60,300/t ($720/t) at the month's beginning. The above prices mentioned exclude GST at 18%. (INR 1 = USD 0.011943 ; USD 1 = INR 83.7311)

Import, export volumes: India's bulk HRC and plate imports are surging, according to vessel line-up data compiled by BigMint. Import volumes aggregated to 673,377 tonnes (t) as per the data compilated till 27 July 2024. Further, imports aggregating around 1,63,557 t are expected to arrive in the first fortnight of August 2024.

Indian steel mills this month focused more on domestic sales of HRC and refrained from exporting to Southeast Asia, the Middle East and the European Union amid increasing price competition. Furthermore, subdued global demand and a seasonal slowdown in critical markets such as Europe and the Middle East are among other factors weighing on the export volumes from India.

The end-buyers are resisting buying at current operating prices in the trade channel and negotiating for even lower tags, BigMint learnt from reliable distributor sources. Moreover, most buyers and sellers are holding back procurements and await the mills' list price announcement for August 2024 sales, anticipating a reduction in their list prices considering the current market scenario.