India: Domestic GP Prices Expected to Rise in Aug’17

Indian steel biggies are likely to increase GP prices in the first week of Aug’17 by INR 1000-1500/MT over increased buying inquiries and tight supply.

Trade sources highlighted that major Indian mills may announce another price hike in Aug'17 for GP products over improved bookings for the GP material in the domestic market.However increased buying inquiries coupled with less supply which has led to less material availability.

Market participants mentioned that scarcity of inventories has created artificial scarcity which is providing sufficient room for the manufacturers to raise GP prices.

As per SteelMint assessment,reference prices of GP (120 GSM) 0.8mm for this week remain unchanged and are hovering in the range of INR 50,000-50,600/MT (ex-Mumbai),INR 47,000/MT (ex-Chennai),INR 48,000/MT(ex-Delhi) and INR 49,000-53,000 ( ex-Hyderabad).The prices mentioned above are basic excluding GST @ 18%.

Chinese HDGI Export Offers Remain Unaltered Amid Thin Trading
Chinese mills have kept HDGI export offers stable this week owing to limited buying activity in the global market. HDGI export offers witness the rise in prices since last five consecutive weeks on account of higher domestic prices.However constant rise in prices results to sparse buying among overseas buyers

Prices remained unchanged for this week and are assessed in the range of USD 595-605/MT,FoB China.

Major mills are offering HDGI in the range of USD 600-630/MT,Fob basis.However some deals have been settled with South Korea in the range of USD 605-615/MT,CFR basis