India: Domestic HRC Prices Uptick in Traders Market; Trades Remain Sluggish

This week Indian HRC prices witnessed marginal increase in domestic market post recent hike by major Indian steel mills by INR 500-1000/MT in the beginning of this month.

Current trade reference prices in traders market for HRC (IS2062) 2.5 mm-8 mm is around INR 42,500-43,000/MT (ex-Mumbai) and INR 42,200- 42,500/MT (ex-Delhi) and INR 44,500MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.

Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 47,000-47,500/MT (ex-Mumbai), INR 47,000-47,500/MT (ex-Delhi) and INR 51,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

However few trade sources shared that market sentiments remained bearish and dull sentiments prevailing in domestic market.

A trader based in Mumbai region commented that,”Recent hike by major steel mills has been partially absorbed in the market amid subdued trades in domestic market ahead of general elections scheduled this month”.

Another trader based in Ludhiana stated that ," Prices have exhibited marginal upside in domestic market. However lesser trades and low sales volumes may put pressure on HRC prices by the end of the month.

Thus, major Indian steel mills hike flat steel prices following surge in imported HRC offers in the beginning of the month.However ahead of elections, HRC prices seems difficult to absorb in domestic market.