Indian government run-mill Steel Authority of India Limited (SAIL) has cut base prices for hot rolled coil (HRC) and cold rolled coil (CRC) for September deliveries, SteelOrbis has learned from trade circles.
The sources said that the government-run mill has cut its HRC base price by INR 1,000/mt ($12/mt) while its CRC base price has been reduced by INR 2,000/mt ($24/mt).
Sources said that private steel mills are also considering dropping base price by INR 1,500/mt ($18/mt), but official confirmations are expected to be made over the course of the current week.
Following the price cut, the effective base price of HRC stands at around INR 50,000-51,000/mt ($600-612/mt) ex-works. At the same time, HRC trade prices of distributors are lower after continuous declines, at INR 49,000/mt ($584/mt) ex-Mumbai.
“Given the surplus of flat products available across the supply chain, mills have no alternative but to drop prices to be able to sell in the local market. We may reverse the decision and even go in for a base price increase if the government implements measures to check rising imports, as has been promised by both ministries of commerce and steel,” an official at a government mill said.