[SMM India Domestic Market Weekly Review] India Steel and Scrap Prices Decline Amid Weak Demand

[India Export] Indian HRC export discussions remained focused on Europe, with the latest indications around 750 USD/tonne CFR, while fresh firm offers to Vietnam and the Middle East remained limited. The rupee’s strengthening this week adds another consideration for sellers: unchanged dollar offers translate into lower rupee receipts on unhedged sales. This makes the return after freight, port charges and financing more relevant when weighing export bookings against domestic business. Mumbai HRC indications of approximately 659–664 USD/tonne (62,500–63,000 INR/tonne) EXW, excluding 18% GST, provided the latest domestic reference. The currency effect varies with mills’ hedging positions and dollar-linked input purchases, so it does not imply a uniform reduction in margins. Meanwhile, billet expectations around 490–510 USD/tonne FOB India remained seller indications, with fresh transactions at these levels still unconfirmed.

Indian HRC export indications for Europe remained around 670 USD/tonne FOB India early in the week, unchanged from the previous week, while the latest destination indications held around 750 USD/tonne CFR, also unchanged week on week. Fresh firm offers to Vietnam and the Middle East remained limited, with Europe continuing to attract the main export interest. Indian billet seller expectations moved higher to approximately 490–510 USD/tonne FOB India this week, compared with last week’s 465–470 USD/tonne indications, although fresh transactions at the higher levels remained unconfirmed. Domestic Indian HRC indications were approximately 659–664 USD/tonne (62,500–63,000 INR/tonne) EXW Mumbai, excluding 18% GST, with some offers reaching 669 USD/tonne (63,500 INR/tonne). Automotive demand and reported maintenance at Tata Steel Meramandali and JSW supported sellers’ pricing expectations. Earlier coking-coal increases feeding through contract-pricing formulas added cost support, while buyer acceptance remained the key test for higher offers.

[India Domestic] India’s domestic steel prices remained mostly stable to lower across major markets on Oct 16 amid slow trading activity and limited demand. Buyers stayed cautious ahead of the Dussehra holiday. Market activity may improve next week after the festival, although a significant price movement will depend on a recovery in buying interest. Mumbai rebar trend sideways over a week at 565 USD/tonne (53,700 INR/tonne) EXW Mumbai. Chennai billet flat 500 USD/tonne (47,500 INR/tonne) delivered Chennai. Mandi ingot edged down 2 USD/tonne (200 INR/tonne) to 490 USD/tonne (46,500 INR/tonne) EXW Mandi. Mandi HMS 1&2 (80:20) down 1 USD/tonne (100 INR/tonne) to 397 USD/tonne (37,700 INR/tonne) delivered Mandi. Bellary PDRI sponge iron unchanged 305 USD/tonne (29,000 INR/tonne) EXW Bellary.