Indian HRC Prices Remain Supported in Recent Trades

This week domestic HRC prices exhibited a mixed response. Prices witnessed increase by INR 500/MT in northern and southern regions, however in western and eastern regions of India prices remained range-bound.

Current trade reference price for HRC (2.5-8mm, IS2062) continues to hover at INR 35,500-36,000/MT (ex-Mumbai), INR 35,500-36,500/MT (ex-Delhi), and INR 36,250-36,500/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

Currently, domestic CRC (0.9mm, IS 513) trade reference prices on a weekly premise assessed at INR 40,500-41,000/MT (ex-Mumbai), INR 40,250-42,000/MT (ex-Delhi), and INR 40,250-41,500/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

Few trade sources based in southern region shared that, " Domestic HRC prices have shown uptick by INR 500/MT owing to supply constraints from few major mills amid maintenance shut down and export orders booked previously".

Mumbai based trade sources shared that flat steel prices remained range-bound this week owing to slow demand. However domestic HRC prices may witness further increase in Jan'20 following uptrend in global prices.

Meanwhile absence of active import bookings are likely to keep domestic HRC prices supported.

Earlier, SteelMint reported that major eastern Indian steel mill witnessed maintenance shutdown at its blast furnace for one week in Nov'19. Also another major steel mill based in western India witness maintenance shut down in its CRM mill- 1& 2 for 3 to 4 months which in turn resulted to lower inventory levels and will boost domestic HRC prices in the near term.

Also, Indian state owned mill had floated export tender of 15,000 MT HRC (thickness 2-12mm) for end Jan shipment. As per sources the company has cancelled the tender owing to high expectations. Due date for the tender was 9th Dec'19.If sources are to be believed, highest bids fetched was around USD 445/MT FoB.