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Indian HRC trade market exhibits mixed sentiments

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BigMint Bureau

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21 Oct 2020, 19:28 IST

Indian HRC trade market exhibits mixed sentiments

Indian HRC and CRC trade market exhibited mixed sentiments this week. Prices in northern India moved up on tight material availability, but market sentiments softened in eastern and western India.

Also towards the end of last week, Indian govt owned - SAIL announced 2nd price hike this month by INR 500-1000/t. The first price hike announcement was made by around of INR 1500-2000/t towards the beginning of the month. However other major mills have not raised the offers for the 2nd time as it looks tough to be absorbed in the market.

Market round-up-

In western India (Mumbai) trades remain subdued as buyers are reluctant to purchase material at higher prices. SteelMint's benchmark assessment for commercial-grade HRC stands at INR 42,500-43,000/t and CRC INR 53,000-53,500/t (exy Mumbai), stable against last week.
In the northern India, HRC prices witnessed increase by INR 250-750/t owing to the ongoing protest by the Punjab farmer's "rail roko" against the new farm laws adversely affecting the supply chain. Market sources shared with SteelMint that, "there is no rail movement which has severely affected the supply of HRC coils in Punjab state ".
In addition to this, market sentiments in eastern Indian softened on holiday mood due to the festive occasion of Durga Pooja

SteelMint price assessments of key trade markets

HRC (IS 2062, 2.5 - 8mm) prices are assessed at INR 44,000-45,000 (exy-Delhi) while INR 43,500-44,500/t (exy-Chennai).
CRC (0.9 mm IS513 GR) are currently seen at INR 53,000-54,000/t (exy-Delhi) and INR 53,500-54,500/t (exy-Chennai).
Prices do not include GST extra @18%.

What may happen: Trade participants shared with SteelMint that mills are having good business on decent orders with OEM's. However, due to the limited supply trade market remains affected. Thus mills have shifted their interest to domestic sales and try easing out supplies in the coming month. This may soften prices in the near term.

Also, Indian automakers are likely to face a price increase of around 12 % - 15% for half-yearly contracts with steel companies, SteelMint learned from its channels.