Indian Flat Steel Prices Decline by INR 500-1000/MT in Traders Market

Indian flat steel prices declined by INR 500-1000/MT W-o-W in traders market over sluggish demand amid lower sales volume and recent import bookings made.

Domestic flat steel prices in few major markets witness decline this week by INR 500-1000/MT in traders market post steep hike of INR 2000/MT witnessed in the first week of Sep’17.However major steel manufacturers have kept the domestic flat steel prices unchanged.

Currently, reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 39,250-39,500 /MT (ex-Mumbai), INR 40,000-41,000/MT (ex-Chennai) and INR 38,500-39,000/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST @ 18%.

As per SteelMint assessment current reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 43,000-43,500/MT (ex-Mumbai), INR 44,500/MT(ex-Chennai) and INR 45000/MT (ex-Delhi) .The prices mentioned above are basic prices excluding GST @ 18%.

Sluggish demand resisted traders to hold significant inventories which has resulted in fall in domestic prices in traders market. Also,import bookings have been made from South Korea in past two weeks which shall add to the supply which may in turn pressurize domestic prices.

On the other hand HRC export bookings also remained weak as the offers were in the range of USD 590-600/MT,FoB basis for Europe but no major deals have been concluded yet. Last deals concluded were heard in the range of USD 575/MT, FoB India. Inquiries from Vietnam based buyers remained weak for HRC of Indian origin.

All these factors have forced price cut in traders market this week.