India: Slow Demand Keeps Domestic HRC Prices Range Bound

This week domestic HRC prices remained stable over slow growth in demand and mute buying prevailing in domestic market.However in the beginning of the week major steel mills announced roll over in flat steel prices for August deliveries. Prices were observed stable in majority of markets except few markets like Faridabad and Bangalore were a price reduction of INR 500/MT was seen.

As per SteelMint price assessment trade reference prices for HRC (IS2062,2.5-8mm) is currently at INR 37,500-38,000/MT (Ex-Mumbai), INR 37,000-37,500/MT (ex-Delhi) and INR 39,000-40,000/MT(ex-Chennai).Prices mentioned above are basic and extra GST@ 18% will be applicable.

Meanwhile trade reference prices of CRC (0.9mm, IS 513) prices on weekly basis are currently hovering around INR 42,500-43,000/MT (ex-Mumbai), INR 40,000-42,000/MT (ex-Delhi) and INR 43,500-44,500/MT(ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Thus traders are expecting rebates or discounts in order to entice the buyers and push sales in domestic market.

Traders in northern region shared that,”Pessimistic sentiments and dull buying will further correct HRC prices in domestic market”.

Meanwhile few other trade sources in southern region commented that,” Domestic HRC prices have already reached near to bottom levels and further decline will deteriorate the sentiments in domestic market.”

Other industry participants shared that poor sales in auto sector and absence of govt expenditure along with ongoing monsoon season continue to keep domestic HRC prices under pressure in domestic market.