India: Festive Season Likely to Keep Domestic HRC Prices Firm

Market participants are hopeful of upcoming Diwali festive season to boost demand and less chances of further decline in prices in near term.Further festive holidays will keep domestic HRC prices largely supported.

However with limited trade activities and delayed purchases by few end users have drifted down Indian HRC prices by INR 200-500/MT against last week in few markets.

As per SteelMint's price assessment current trade reference prices in traders segment for HRC (IS2062,2.5-8mm) is at INR 34,000-34,750/MT (Ex-Mumbai),INR 34,000-34,500/MT (ex-Delhi) and INR 35,000-36,000/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

Currently domestic CRC (0.9mm, IS 513) trade reference prices on weekly basis are hovering around INR 39,200-39,500/MT (ex-Mumbai),INR 38,500-40,000/MT (ex-Delhi) and INR 38,000-40,000/MT (ex-Chennai).Prices mentioned above are basic and extra GST@ 18% will be applicable.

Industry participants have shared that,” they foresee positive sentiments post Diwali holidays which may push demand in domestic market.However with the festive season around the corner may keep domestic HRC prices largely stable”

Also few other trade sources shared that,"owing to liquidity crisis and poor sales volumes continue to keep domestic HRC prices under pressure"

However with easing off higher inventories to overseas markets in form of exports and improvement in buying activities may fuel optimism and lift domestic HRC prices in upcoming month.