HR coils and CR coils prices retreated on April 26 on fears that the current rally in steel prices owing to imposition of MIP may not sustain for long.
Offer prices for hot rolled coil (HRC) imports into India were up to $435 per ton CFR Mumbai from $430 per ton CFR a day ago, sources said.
Some market sources said offers for commercial grade (HRC) to India increased to $435-450 per ton CFR Mumbai for June shipments, up from $435 per ton, however, actual deals were not yet reported.
Indian steel players may have added advantage of MIP. Since the introduction of the MIP in February, Chinese steel prices have rallied around 45% and Indian steel prices at about 25%, making Indian steel prices on an average 6% cheaper than the landed cost of imported steel. But, MIP is only a temporary measure which will be replaced by anti-dumping duties. The current MIP will expire in August this year and an alternative and less strict measure will be imposed.
Analysts say the currently the companies have already factored in price recovery of Rs 4,000 per ton. In comparison, actual price recovery is of Rs 2,000-3,000 per ton year to date. Although the momentum in steel prices may continue for some time, producers should be cautious.
Prices of flat products in various markets during the past one year (Rs/ton)
PRODUCT |
NAME OF THE MARKET |
Price Rs./Ton as on |
Price Rs./Ton as on |
Price Rs./Ton as on |
Price Rs./Ton as on |
Price Rs./Ton as on |
Daily changes |
26-Apr-16 |
25-Apr-16 |
28-Mar-16 |
29-Oct-15 |
27-Apr-15 |
|||
HR COILS |
DELHI |
30,700 |
30,700 |
30,200 |
29,400 |
32,500 |
⇔ |
HR COILS |
KOLKATA |
30,700 |
31,100 |
30,700 |
28,900 |
32,400 |
▼ |
HR COILS |
LUDHIANA |
30,700 |
30,700 |
30,200 |
29,800 |
32,500 |
⇔ |
HR COILS |
HYDERABAD |
30,900 |
31,100 |
30,700 |
29,800 |
32,800 |
▼ |
HR COIL IMPORT |
Imported (CFR |
435 |
435 |
320 |
295 |
399 |
⇔ |
CR COILS |
MUMBAI |
34,200 |
34,600 |
34,200 |
32,000 |
36,900 |
▼ |
CR COILS |
LUDHIANA |
34,200 |
35,000 |
35,000 |
33,700 |
36,700 |
▼ |
CR COILS |
HYDERABAD |
34,600 |
35,000 |
35,000 |
32,900 |
36,800 |
▼ |
PLATE |
RAIGARH |
30,000 |
30,000 |
28,500 |
- |
- |
⇔ |
GP |
DELHI |
40,000 |
40,000 |
38,700 |
- |
- |
⇔ |
Source: Compilation from various sources & ISMW data