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India: Trade-level HRC prices stay range-bound

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BigMint Bureau

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11 Apr 2024, 16:53 IST

India: Trade-level HRC prices stay range-bound

HR and CR coil prices exhibited stability across domestic markets, with the exception of Ahmedabad. Prices in Ahmedabad rose by INR 1,000/t ($12/t) to INR 53,000-54,000/t ($637-649/t). Limited trading activity persists due to liquidity crisis and lower demand among market participants.

BigMint's benchmark assessment (bi-weekly) for HRC (IS2062, Gr E250, 2.5-8mm) inched up by INR 200/t ($2/t) to INR 51,900/t ($624/t) on 9 April 2024, compared to the previous week. Also, CRC (IS513, Gr O, 0.9mm) prices were up by INR 200/t ($2/t) at INR 61,100/t ($734/t) during the same period. These prices are ex-Mumbai, excluding 18% GST, and are for cut-to-length (CTL) deliveries. (INR 1 = USD 0.0120154 ; USD 1 = INR 83.2265)

Assessed prices for hot-rolled plates (IS2062, Gr E250, 20-40mm) on a weekly basis have exhibited stability, at INR 57,100t ($686/t) within the broader range of INR 56,000-60,000/t ($673-721/t). These prices are ex-Mumbai, excluding 18% GST.

Market updates:

1. Domestic trade-level prices stable: The trade market continues to see sluggish trading activity, owing to growing liquidity concerns and limited demand.

"Market activities remain lackluster, driven by mounting liquidity apprehensions and constrained demand," noted a market participant. "Despite recent price hikes by mills, there is a prevailing sense of unease in the market," they added. Additionally, some participants observed that while the price increases spurred some activity in the traders' market, sustaining this momentum could prove challenging in the near term.

2. Indian HRC export prices drop: BigMint's India HRC (SAE 1006) export index (for the Middle East and Vietnam) fell by $7/t w-o-w to $560/t against $567/t FOB east coast India.

Indian HRC export offers to the Middle East (ME) dropped by $5-10/t week-on-week to $600/t, while Chinese HRC offers decreased by $5/t, hovering around $560-565/t from tier 1 mills. ME's imported HRC prices fell amid slow demand ahead of Eid and Ramadan.

European HRC export prices also declined to $640-645/t CFR Antwerp due to cautious European buyers and slow trade activity.

Chinese HRC offers to Vietnam slightly increased, influenced by rising SHFE HRC futures. Hoa Phat, a Vietnamese steel company, reduced HRC prices by $40-45/t amid slow construction activity and competitive import prices.

3. Exports, imports begin to slow down: India's export of bulk hot-rolled coil (HRC) and plates were 52,050t till 8 April 2024, according to vessel line-up data tracked by BigMint. Total export volumes reached 6,90,197t, in March 2024 while it was 6,42,422t in February 2024.

India's imports of bulk hot-rolled coil (HRC) and plates were at 77,056t till 8 April 2024. Total import volumes reached 3,81,794t, in March 2024 while it was 4,65,276t in February 2024.