India: Domestic HRC Prices Drop by INR 500-1000 (USD 7-14.5)

SteelMint in conversation with trade participants learned that domestic HRC prices continued to slump further over gloomy demand and limited trades happening in domestic market. Domestic HRC prices are hovering at around 1.5 years low.

On weekly basis domestic HRC prices fell further by INR 500-1000/MT W-o-W in traders market. As per SteelMint price assessment for HRC (IS2062,2.5-8mm) is currently at INR 38,500-39,000/MT (Ex-Mumbai), INR 38,500-38,800/MT (ex-Delhi) and INR 39,500-40,500/MT(ex-Chennai).Prices mentioned above are basic and extra GST@ 18% will be applicable.

Meanwhile CRC (0.9mm, IS 513) prices also fell by INR 500-700/MT and are currently hovering around INR 43,500-44,000/MT (ex-Mumbai), INR 42,000-44,000/MT (ex-Delhi) and INR 44,000-45,000/MT(ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Market participants based in Mumbai commented that,”Delayed funding in govt projects due to liquidity crunch resulted to subdued buying and continual decline in domestic HRC prices.”

A trade source based in Faridabad mentioned that,”Domestic HRC prices are expected to decline further amid monsoon season. However sentiments will continue to remain bearish over seasonal slowdown till the month of Aug and demand will start picking up probably till Sept’19”.

Also poor sales from auto sector and slowdown in construction and infrastructure activities amid ongoing rainy season will continue to keep domestic HRC prices under pressure.