Spot prices of hot rolled coil cut

Spot prices of hot rolled coil (HRC) have been slashed by Rs 750-1,000 a tonne. However, if the discounts are factored in, the impact for companies will vary. Some companies will not feel much heat.

A steel industry source said the discounts were still on, and in regions like the south and the east, where the market was softer, the impact, depending on customers, would be in the range of Rs 1,500-1,700 a tonne. At present, the delivered price of HRC is around Rs 26,000 a tonne.

According to a trader, depending on the performance of the customer, the discounts vary between 2 per cent and 5 per cent, and this is independent of the list price.

"Even in August, some customers from the south and the east were asking for discounts of Rs 1,000-1,500 a tonne," said a steel industry representative.