Indian Spot HRC Steel prices decline sharply during November

INDIA December 24 2015 9:37 AM

MUMBAI (Scrap Register): After experiencing price stability in October, spot HR coil prices in the domestic Indian steel market saw a sharp decline month-on-month during November, said The Steel Index.

According to TSI, the weekly HRC index fell 4.8% month-on-month to Rs. 31,317 a ton, delivered Mumbai.

November marked the 15th consecutive month of falls for TSI’s ASEAN HRC index, as activity in the region ground close to a standstill. While Chinese mills tried to hold their offers, buyers anticipated further declines, a stalemate that kept prices practically unchanged during the month.

Market attention is shifting to China’s export tax policy for 2016, as rumours starting to circulate that China may consider scrapping tax rebates on certain steel products. This follows the removal of tax rebate for boron-added steel at the beginning of 2015. 

Meanwhile, according to the Ministry of Finance, China decided to lower export taxes on some pig iron and billet products effective January 1 2016, underlining problems of weak demand and oversupply in the domestic Chinese market.