Indian Mills Roll Over Domestic HRC Prices for October

SteelMint in conversation with industry participants learned that major Indian steel manufacturers have kept HRC, CRC prices unchanged for the month of Oct'19 amid slow off take in domestic steel market. Also with the upcoming festive holidays this month domestic HRC prices will continue to remain under pressure in Oct'19.

Prices of major manufacturer's is hovering at around INR 35,000/MT (ex-Mumbai) for HRC (2.5-8mm,IS2062) and CRC prices ( 0.9 IS513 Gr O) is around INR 40,000/MT (ex-Mumbai).Price mentioned above are basic and extra GST @18% is applicable.

It is to be noted that mills had announced a roll over in prices in Sept but owing dull demand they offered discounts of INR 1000-1500/MT.

However on the other hand current trade reference prices in traders segment for HRC (IS2062,2.5-8mm) is at INR 34,500-35,000/MT (Ex-Mumbai),INR 34,500-35,000/MT (ex-Delhi) and INR 35,500-36,500/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 weekly basis are hovering around INR 40,000-40,500/MT (ex-Mumbai),INR 38,800-40,000/MT (ex-Delhi) and INR 40,500- 41,500/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Thus factors like cash crunch,monsoon season and reduction in credit facilities restrict buying activities in domestic market.Also slump in auto and construction sector affected nation's demand to great extent.

Hence, Indian steel mills shifted their interest to exports in order to liquidate inventories present in domestic market.Indian steel mills are aggressively exporting HRC to Vietnam and witness 20% increase on monthly basis in bulk shipments.