Indian HRC Trades Turn Slow Over Weak Buying

This week domestic HRC trades witnessed a slight decline in few regions over a slowdown in buying activities and weak demand prevailing in the domestic market. The majority of markets have observed price stability, however, few regions like Faridabad and Mumbai have witnessed slight correction.

Current trade reference prices for HRC stands at INR 39,250-39,500/MT (ex-Mumbai), INR 39,000-39,500/MT (ex-Delhi), and INR 39,500-40,500/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

Current trade reference CRC (0.9mm, IS 513) prices on a weekly premise assessed at INR 45,000-45,500/MT (ex-Mumbai), INR 42,700-44,500/MT (ex-Delhi), and INR 45,500-46,000/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

Meanwhile, market participants are awaiting price announcements from mills for Feb'20. Also, the market is looking forward to the budget announcement to give indications on project allocations that may boost the steel sector.

Traders based in western India shared that, "Slow off-take of material leads to softening of domestic HRC prices. Also, buyers are not aggressively purchasing material as they are already holding enough stocks in hand."

Further, major Indian steel mills are planning to raise flat steel prices by around INR 1000-1500/MT for Feb deliveries. However, the official announcement is still awaited.