Indian Steel Mills Hike HRC Prices by INR 500-700/MT for Mar'20

Major Indian steel manufacturers have raised HRC & CRC prices by INR 500-700/MT (USD 7-10) for March deliveries, SteelMint learned from its reliable sources. Thus, the company's effective price of HRC (2.5-8mm, IS2062) is hovering around INR 39,800-40,000/MT (ex-Mumbai) and CRC (0.9mm IS513 GR) is heard at INR 45,500/MT (ex-Mumbai). Prices mentioned above are basic and extra GST @18% is applicable.

-- Prior this, steel manufacturers had raised flat steel prices for Feb'20 by INR 1,500- 2,000/MT.

-- Increase in coking coal prices along with an absence of active imports from China amid Coronavirus issues compelled Indian steel mills to raise steel prices this month.

Sluggish demand in the trade segment - In contrast to this, demand continues to remain sluggish in the domestic market. Also, few market sources shared that price hike announced in the month of Feb was difficult to absorb and traders are expecting discounts to escalate buying.

-- Thus, SteelMint's trade reference price for HRC stands at INR 38,000-38,750/MT (ex-Mumbai), INR 38,250-38,500/MT (ex-Delhi), and INR 39,000-40,000/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

-- Trade reference CRC (0.9mm, IS 513) prices is assessed at INR 44,500-45,500/MT (ex-Mumbai), INR 42,200- 45,000/MT (ex-Delhi), and INR 44,500-46,000/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

Further adding to this, with the approaching fiscal year-end this month and weak purchases from the consumer segment, a further hike in steel prices appear difficult to accept in the domestic market.