Indian Domestic HRC Prices Fall on Limited Inquiries

Indian domestic HRC prices in the trade segment have witnessed a fall of around INR 500/MT W-o-W in a few major markets like Mumbai, Faridabad, and Chennai. Although the steel markets have partially resumed across India with the easing of lockdown regulations, however, only 10-25% of the trades are happening in different regions, as stated by the market participants.

Currently, the domestic HRC (IS2062, 2.5 - 8mm) price stands at INR 37,000-37,500/MT (ex- Mumbai), INR 37,000-37,500/MT (ex-Faridabad), and INR 38,500- 39,500/MT (ex- Chennai). The prices mentioned above are basic, and extra GST @18% is applicable.

Meanwhile, CRC prices fell significantly by around INR 1500-1700/MT W-o-W in the Mumbai region. Currently CRC prices assessed at INR 42,500-43,500/MT (ex- Mumbai), and INR 43,500-44,000/MT (ex- Chennai). All prices mentioned above are basic, and extra GST @18% is applicable.

A few market participants from Northern India shared, "the market has resumed partially and the buyers are staying on the sidelines to observe the market. Further, they shared that the absence of clarity in prices is fueling uncertainty among traders since buying remained limited."

Further, sources anticipated that the demand will pick up gradually as the market conditions improve with the subsiding effect of COVID-19 spread and related lockdown.

In May'20, Indian steel mills announced roll over in steel prices and exported aggressively to Vietnam and China for June deliveries at lower prices. However, later last week mills have raised HRC export offers by USD 5-10/MT.