India: Domestic HRC Price in Traders Market Increase on Strong Export Bookings

This week domestic HRC prices witnessed increase by around INR 500-1000/MT in traders market. SteelMint reported last week that major Indian steel mills are likely to announce hike of INR 1000-1500/MT (USD 14-21) in Jan '20.

Thus,current trade reference prices for HRC stands at INR 36,000-37,000/MT (ex-Mumbai), INR 36,000-37,500/MT (ex-Delhi), and INR 37,000-38,000/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

Current trade reference CRC (0.9mm, IS 513) prices on a weekly premise assessed at INR 41,500-42,000/MT (ex-Mumbai), INR 41,000-42,000/MT (ex-Delhi), and INR 41,000-42,000/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.

“Demand is good at the increased offers amid optimistic buying sentiments. Also with the improved demand hike in prices seems to be absorbed in the domestic market”, shared by trade sources based in Mumbai.

Also absence of imports to India from major exporting nations and hindrance in supplies in few regions amid maintenance shutdown in major steel mill based in western region can be attributed to increase in domestic HRC prices in Jan'20.

Lastly, increase in Indian HRC export offers to overseas buyers provide enough motivation to Indian steel mills to raise prices in the domestic market. Also mills have actively booked HRC for export to Vietnam, UAE & Europe recently.