Steel Authority of India Ltd (SAIL) has reduced prices of flat products by Rs 750-1,500 a tonne across categories, on account of weak global trends.
While the other players were yet to decide, most of the steel producers said the market was sluggish, led by weak Chinese sentiments. And that prices of flat products used by consumer durables and automobile majors could drop by Rs 500-1,500 a month. At present, in the flat segment, hot rolled coil (HRC) prices in the domestic market are Rs 31,000-32,000 a tonne.
Anil Sureka, director-finance, Ispat Industries, said prices were under pressure and HRC prices for monthly customers could come down by Rs 1,000 a tonne. A Tata Steel spokesperson said the company was yet to take a call.
The Chinese market has been seesawing, with prices falling below the $500 a tonne level during the middle of last month. Though prices have rebounded in China over the past week, there was large scale de-stocking due to the year-end and the market was volatile. Average global HRC prices, $590 a tonne in September, were now at $550 a tonne.
Cold rollers said there were some indications from the HRC producers that prices would be dropped. If HRC prices were dropped, then cold rolled would come to the same extent. However, a call would be taken over the next couple of days.
Industry sources said the country was also facing a dumping threat. “Non-traditional markets like France exported HRC to India during April-August at an average landing price of $456 a tonne, while the Middle East and Far East prices were lower at $405-$420 a tonne,” they said.
If HRC prices came down, then cold rollers would also drop prices. Neeraj Singal, managing director, Bhushan Steel, said there were signs that prices could drop by Rs 1,000-1,500 a tonne. Bhushan Steel cut prices by around Rs 500 a tonne last month.
Steel prices in the domestic market had moved up by around 11 per cent since the beginning of the year. However, industry players felt the appreciation was led by stimulus packages across the globe, which were fading, and the real demand would have to come back.
