SteelOrbis has been informed that flats prices in the local Indian market have increased on average by INR 300-500/mt (6-10$/mt) from mid-March. This increase rate varies depending on the producer and the material in question. For instance, the uptrends in CRC and HDG have been slower. The Indian domestic market seems somewhat more active as compared to the global markets. The destocking process, aimed at minimizing costs on the end-user side and at boosting cash flow, is observed to be faster in India than in the European markets. On the other hand, we should remember that the increase rate in March totaled INR 1,000-1,500/mt ($20-30/mt); thus the uptrend in April is slower.
Although price lists in the local Indian market show variation depending on the producer, the average price movements are as follows: HRC offers have improved by INR 500/mt ($10/mt) to INR 26,500/mt ($535/mt) ex-works, excluding VAT. CRC offers have increased from last month's level of INR 31,500/mt ($636/mt) to the current level of INR 31,900/mt ($644/mt) ex-works, excluding VAT. On the other hand, HDG base prices in the local Indian market have risen by INR 300/mt ($6/mt) to INR 32,800/mt ($663/mt) ex-works, excluding VAT, from the level of four weeks ago.
Looking at the export side in India, due to the weakening in sectors that consume mostly flat steel (HDG consuming sectors in particular such as construction, automotive, white goods and shipbuilding) and due to the weakening in important regions for these sectors such as Europe, Southeast Asia and the US, sharp decreases have been observed compared to the levels of August last year. However, looking at the HDG export offers given from India in the last two weeks, it is observed that prices are now closer to moving on a stable trend (even though there has been no improvement in demand) due to production costs.
As for ex-India export offers, 0.4 mm 100 gr/m² zinc coated HDG is being offered for export at price levels of $540-560/mt FOB for May shipment. Essar is giving the most competitive offers with the abovementioned prices. On the other hand, another producer in India is reported to be giving offers for the same material at $600-610/mt FOB. In the last two weeks, only the producers Jindal and Bhushan have decreased their price levels for the material in question, by $30/mt and $10/mt respectively.
Meanwhile, no price changes in import HRC offers have been observed in the last two weeks.