Market sources shared with SteelMint that major Indian steel mills may increase domestic HRC & CRC prices for September deliveries. However the quantum has not been finalized yet.
Which all factors are driving Indian HRC, CRC prices ?
1.Rise in domestic iron ore prices – Today National Mineral Development Corporation (NMDC) has increased the prices of Baila fines and lumps prices by INR 150/MT w.e.f from today.Also trade sources shared that Odisha based merchant miners are likely to increase iron ore prices by around INR 300/MT shortly.
2.Improved bookings in domestic market-Traders and manufacturers reported positive sentiments amid Improved bookings and increase in buying activity among end users in domestic market.Also anticipation of better demand in the month of September as the monsoons subsides may push prices in upward direction.
3.Import parity between landed and domestic HRC– A couple of weeks back Indian importer booked around 20,000 MT of imported HRC from Japan in the range of USD 640-645/MT CFR basis.Thus landed cost in INR is assessed around INR 46,900/MT (ex-Mumbai).However current HRC prices (2.5-8 mm IS2062) are heard in range of INR 45,000-45,500/MT exclusive of GST @18%.
However this week prices remain firm in traders market.
Thus current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 45,500/MT (ex-Mumbai),INR 45,200/MT(ex-Delhi) and INR 45,500/MT(ex-Chennai).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 50,000/MT (ex-Mumbai),INR 50,000-51,000/MT (ex-Delhi) and INR 50,500-51,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.
Few other regions like Ahemdabad witness uptrend in prices by INR 500-700/MT this week on account of increased buying.
Previously in the beginning of the August,few Indian mills cut HRC CRC prices by INR 500-750/MT and Indian govt owned SAIL had roll over flat steel prices for the month of August amid slow demand and prevailing monsoons.