India : Domestic HRC Prices Drop by INR 500-1000/MT in Traders Market

This week SteelMint heard from its trade sources that domestic HRC prices slumped further by INR 500-1000/MT in traders market post announcement of roll over in flat steel prices by major steelmakers in month of Sep’19.

As per SteelMint price assessment trade reference prices for HRC (IS2062,2.5-8mm) is currently at INR 35,500-36,000/MT (Ex-Mumbai), INR 35,500-36,000/MT (ex-Delhi) and INR 37,000-38,000/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Meanwhile domestic CRC prices move down by INR 500/MT this week over limited trades.Thus domestic CRC (0.9mm, IS 513) trade references prices on weekly basis are currently hovering around INR 40,000-41,000/MT (ex-Mumbai), INR 40,000-41,200/MT (ex-Delhi) and INR 41,000-43,000/MT(ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Market participants shared with SteelMint that Indian steel mills offered rebates of last month by around INR 750-1000/MT in domestic market.

The downturn in domestic HRC prices refuses to subsides amid dwindling demand and lower consumer sentiments coupled with liquidity crunch in domestic market.Meanwhile auto sector is witnessing slowdown blues this month which lead to significant drop in domestic HRC prices.

A trader based in Mumbai shared that,” Indian steel mills and traders are eagerly waiting for arrival of festive season as they are hoping that this can help in revival of dull auto demand prevailing in domestic market”.

Furthermore, Indian steel mills have lowered their HRC export offers to offload their surplus inventories to overseas market.Indian HRC export offers is hovering around USD 440-450/MT FoB basis for Sep end Oct shipments.