India: Domestic HRC Prices Fall Further; Traders Anticipate Sharp Correction in Jan

This week Indian HRC prices witnessed further correction by INR 500-1000/MT in traders market over sluggish trades and limited buying. Although buyers are also reluctant to purchase material and await price announcement by major Indian mills for Jan’19 deliveries.

Meanwhile as per the data maintained with SteelMint, domestic HRC prices in traders market is hovering close to an year low. Similar price levels were recorded in the month of Jan-Feb’18.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 43,000-43,500/MT (ex-Mumbai) and INR 42,000-42,500/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.

Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 48,500-49,000/MT(ex-Mumbai) and INR 48,500-49,000/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Another major reason for constant correction in HRC prices is cost effective import bookings made in past which will be arriving to India in end Dec'18 or early Jan’19.Thus to cope up with competitive offers of imports, traders and manufacturers have lowered HRC prices in domestic market.

A trader based in Delhi shared that,” Market sentiments continue to remain pessimistic amid dull demand despite softening HRC prices in domestic market.Discounts and rebates are given to push buying in domestic market”.

Bookings for export have remained on lower side as prices in SE Asian nations turned very low with sharp price cut by Chinese mills and decline in offers from CIS nations.

Few market sources also shared with SteelMint that,major Indian steel mills likely to correct domestic flat steel prices in upcoming month over subdued trades.

Thus falling raw material prices,cheaper imports combined with dull buying may lead to softening HRC prices in domestic market. Thus,it will be interesting to see the quantum of price revision by major Indian mills in the upcoming month.