India: Domestic HRC Trades Remain Slow Amid Festive Holidays

Tedious buying in major domestic markets kept HRC prices range-bound however prices witnessed a correction of INR 500/MT in few regions during the week. However trades remain limited amid Diwali holidays, and trade sources expect clarity on prices to come in the next couple of days.

As per SteelMint's price assessment current trade reference prices in traders segment for HRC (IS2062,2.5-8mm) is at INR 34,000-34,500/MT (Ex-Mumbai), INR 33,500-34,500/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 a weekly basis are hovering around INR 38,500-39,500/MT (ex-Mumbai), INR 37,800- 39,000/MT (ex-Delhi) and INR 38,000-38,500/MT (ex-Chennai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

The market sentiments remained bearish amid prolonged monsoon season and lower buying interest among the consumers this festive season. Meanwhile, liquidity crunch along with a slowdown in the automobile and construction sector remain major hurdles in the domestic market.

However, trade participants are optimistic that prices may remain supported in the domestic market with major steel producers easing off inventories by convening successful export deals, while the production rates had been lowered seeing the meek domestic market demand.