India:Domestic HRC Prices Remain Firm; Trades Subdued

With Indian flat steel prices hitting all time high after price hike announcement by major mills, trades have remained subdued.

Towards the beginning of the month, Indian major steel manufacturers had hiked domestic HRC prices by INR 1000-1500/MT following which HRC, CRC prices touched all time high in traders market. Trade participants reported limited trade volumes at high prices owing to liquidity issues. However demand from project segment is heard to performing well.

This week traders in domestic market have kept HRC prices firm with no major changes over lackluster demand and fewer trades happening in domestic market.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 47,500/MT (ex-Mumbai), INR 47,500-47,600/MT (ex-Delhi) and INR 47,000-47,500/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 53,500/MT (ex-Mumbai), INR 53,000 - 54,500/MT (ex-Delhi) and INR 53,000-53,500/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

A market participant based in Mumbai commented,"Liquidity crunch in few parts of western region along with subdued demand in domestic market results to lower sales volumes in retail sector."

Indian steel manufacturers raised HRC prices on rupee deprecation over costlier imports along with higher production cost. On the contrary thin trades and fewer inquiries resulted to difficulty in absorbing higher HRC,CRC prices in traders market.