Large Indian mills have reduced flat steel product base prices for August deliveries and have been topping up bookings with additional volume-based rebates in the face of weak demand and import pressures, SteelOrbis has learned from various company sources.
The sources said that, barring one large mill, most others have dropped hot rolled coil (HRC) and cold rolled coil (CRC) base prices by INR 1,500-2,000/mt ($18-24/mt) for current month deliveries.
Following the price cut, the effective base price of HRC stands at around INR 51,500-52,000/mt ($614-620/mt) ex-works and that of CRC stands at INR 57,000-58,000/mt ($679-691/mt) ex-works.
After the reduction, base prices have been similar to the trade prices heard in the Indian market this week. At the same time, even the lower base prices were being followed up by volume-based rebates, in the range of INR 500-750/mt ($6-9/mt), to keep pushing volumes in the market under pressure from rising inventories, weak demand and import pressures.
“HRC prices in the local market are under pressure. Local HRC has been offered in the trade market at as low as INR 50,000-50,500/mt ($596-602/mt), but even at these levels there have been very limited buyers interested in purchases,” an India-based trader told SteelOrbis.
According to the sources, only one large private integrated mill is heard to have kept its base prices unchanged for the current month.
