India: HRC Market Sentiments Remain Bearish; Prices Range Bound

Sluggish buying and dull trades have kept domestic HRC market sentiments subdued in domestic market. Ongoing elections, rising inventory among traders due to poor sales volumes along with lull demand resulted in bearish sentiments in India’s domestic flat steel market.

Few trade sources shared that, “There are expectations in the market that mills will announce discounts shortly to escalate buying interest. However further information on the same is still awaited”.

Currently HRC (2.5-8mm,IS2062) in traders market is around INR 41,500/MT (ex-Mumbai), INR 41,500-41,700/MT (ex-Delhi) and INR 44,000/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Currently CRC (0.9mm,IS 513) in traders market is around INR 46,500/MT(ex-Mumbai),INR45,000-47,000/MT (ex-Delhi) and INR 50,000/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Meanwhile few market participants based in eastern Indian commented that,”Buying activities remained affected for few days amid strong cyclone Fani which hit eastern part of India. Cyclone triggered heavy rains and strong winds due to which infrastructure has suffered damage.”

Furthermore HRC sales volumes suffer in domestic market as imported material is being offered at lower price from Korea, Japan and Iran. Thus major Indian mills have to provide price support by offering discounts to escalate buying in domestic market.

Decline in auto sales in Apr'19- As per report, Indian passenger vehicle sales declined in the first month of the fiscal year 2020. Major companies like Maruti Suzuki, Hyundai and Tata recorded decline in domestic sales in Apr’19. The primary reason behind the fall in sales are political uncertainty and stressed consumer sentiment. The overall passenger vehicle wholesales declined by 17% Y-o-Y in April 2019 compared to dispatched in the same month last year,