Indian domestic steel mills have reduced flat product base prices by the range of INR 1,500-2,000/mt ($19-25/mt) for current month deliveries, SteelOrbis has learned from industry and trade circles.
Sources said that state-run steel producer Steel Authority of India Limited (SAIL) has announced its September hot rolled coil (2.5-8 mm) base price at INR 56,000/mt ($702/mt) ex-works, a reduction of around INR 1,500/mt ($19/mt). SAIL’s base price for 0.9 mm cold rolled coil for September deliveries has been issued at INR 64,000/mt ($802/mt) ex-works, a cut of around INR 2,000/mt ($25/mt).
Trade sources said that JSW Steel Limited has announced its HRC base price at INR 56,500/mt ($708/mt) ex-work, a drop of INR 1,850/mt ($23/mt), and its CRC price at INR 64,350/mt ($806/mt) ex-works.
According to market reports, HRC base prices of all domestic steel mills in India, following the price reduction, average in the range of INR 56,000-57,000/mt ($702-714/mt) ex-works excluding 18 percent of Goods and Service Tax (GST), and CRC base prices average in the range of INR 64,000-65,000/mt ($802-814/mt) ex-works excluding the 18 percent GST. Both ranges are down by INR 1,500-2,000/mt compared to those announced in early August.
The weak demand so far and the anticipated lack of an increase in sales in the festival month of October have led to the further decline in base prices in India.
$1 = INR 79.80