India’s flat steel market opened on a positive note, with HRC and CRC prices moving higher on a w-o-w basis, largely driven by policy support and improving sentiment rather than a pickup in demand. HRC prices have been assessed to ₹51,000 per tonne, while CRC prices increased to ₹57,000per tonne. However, the trade level prices modulated in a range of ₹49,000- ₹51,600 for HRC and ₹53,700- ₹58,700 for CRC respectively. Mills will be able to maintain their pricing to some extent due to a new safeguard duty restraining/cutting the ability of mills to import steel, as well as give further encouragement to mill restock. Demand for HRC from domestic mills will continue to be sluggish.

Outlook:

Overall, domestic prices of HRC will continue to increase in the short term due to government policies and positive sentiment within the marketplace, along with restocking activity as demands for HRC do recover. The durability of this increase will greatly depend on how quickly the underlying demand recovers.