India: Domestic HRC Prices in Traders Market Continue to Remain Under Pressure

Domestic HRC, CRC prices in India continue to trade under pressure amid less deals over liquidity issues and elections which kept trade activities on lower side in recent past. Also sluggish automobile sales continue to remain another prominent reason for dull sales in flat steel sales market. On weekly premises, prices have weakened by INR 500-1000/MT (USD 7-14) across various prominent markets.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 43,500-44,000/MT (ex-Mumbai), INR 43,500/MT (ex-Delhi) and INR 45,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.

Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 49,500-50,000/MT(ex-Mumbai),INR 51,000/MT (ex-Delhi) and INR 52,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Few trade sources commented that,"Domestic flat steel market is under panic mode over reduced sales and sluggish buying.Buyers are hesitant to purchase and expecting further down in trade prices"

Also rebates and discounts are also given to escalate buying. Meanwhile buyers are cautious as they expect further downside amid cost effective imports from Japan and Korea.