India: Limited Trades Keep Domestic HRC Prices under Pressure

Indian HRC prices continue to remain on lower side over monotonous demand and mute buying prevailing in domestic market. This week domestic HRC prices registered decline in few markets like Ahmedabad and Bangalore by around INR 750-1000/MT. As per market reports, few major Indian steel mills are taking up production cuts owing to slowdown in domestic sales & inventory pile up.

As per SteelMint price assessment trade reference prices for HRC (IS2062,2.5-8mm) is currently at INR 37,000-37,500/MT (Ex-Mumbai), INR 36,500-37,000/MT (ex-Delhi) and INR 38,500-39,500/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

This week domestic CRC (0.9mm, IS 513) witness decline in few major markets over poor sales and weak purchases. Thus trade references prices on weekly basis are currently hovering around INR 41,000-42,000/MT (ex-Mumbai), INR 40,000-41,800/MT (ex-Delhi) and INR 43,000-44,000/MT(ex-Chennai).Prices mentioned above are basic and extra GST@ 18% will be applicable.

Thus trade sources shared with SteelMint that,”Lower consumer spending on automobiles and consumer durable goods pulls down steel prices in domestic market. Meanwhile ongoing monsoon season leads to gloomy sentiments in domestic market.Thus trade segment is expecting heavy discounts and rebates from major steelmakers to improve buying activities in domestic market.”

Meanwhile other trade sources based in Mumbai shared that ,”Major Indian mills are scheduling annual maintenance shut down to offset domestic demand. On the other hand mills are actively engaged in exports over surplus inventories in domestic market”