Softening Demand Keeps Indian Domestic HRC Market Sentiments Pessimistic

This week domestic HRC prices witnessed slight decline by INR 250-500/MT in traders market. Liquidity crunch, increased inventories and inactive demand resultant to continual fall in domestic HRC prices.

As per SteelMint price assessment trade reference prices for HRC (IS2062,2.5-8mm) is currently at INR 35,000-36,000/MT (Ex-Mumbai), INR 35,000-36,000/MT (ex-Delhi) and INR 37,000-38,000/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Currently domestic CRC (0.9mm, IS 513) trade references prices on weekly basis are hovering around INR 40,000-41,000/MT (ex-Mumbai), INR 39,500-40,500/MT (ex-Delhi) and INR 41,000-43,000/MT(ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Trade sources shared that "rebound in domestic demand is anticipated with the arrival of festive season starting in the month of Oct'19. Also an uptick in market sentiments is expected since monsoon season is approaching to its end".

Prolonged weakness in demand continues to surpress HRC prices in domestic market. Thus, with the motive to liquidate inventory over fragile sales in domestic market, Indian steelmakers are aggressively exporting HRC to Vietnam & other markets.