Large Indian integrated steel mills have announced significant cuts in base prices of hot rolled coil (HRC) and cold rolled coil (CRC) for the current month. The cuts have been made in reaction to the sharp slowdown in demand, weak trade prices in the domestic market, and challenges as regards overseas sales, SteelOrbis has learned from information collated from various producers.
According to sources at steel companies, the cut in HRC base prices averaged at INR 2,000-2,500/mt ($24-30/mt) and the reduction in CRC base prices averaged at INR 2,000-3,500/mt ($24-42/mt).
In particular, following the cuts, JSW Steel Limited’s effective HRC base price for the current month stands at INR 57,250/mt ($692/mt) ex-works, down from INR 59,750/mt ex-works a month ago and its CRC base price stands at INR 62,250/mt ($753/mt) ex-works, down from INR 66,000/mt ($798/mt) ex-works, last month.
ArcelorMittal Nippon Steel Limited’s (AMNS) HRC base price now stands at INR 58,000/mt ($701/mt) ex-works, down from INR 60,000/mt ($726/mt) ex-works in May, and its CRC base price is at INR 62,500/mt ($755/mt) ex-works, down INR 2,000/mt from last month.
Sources said that other major integrated steel mills like Steel Authority of India Limited (SAIL) and Jindal Steel and Power Limited (JSPL) will also follow suit and announce similar price cuts across the flat product segment over the next few days.
$1 = INR 82.70
