India's domestic HRC supply decreased gradually

August 25 MetalBiz--Traders claimed that India's domestic supply of HRC decreased gradually, because India HRC price is still lower than the price in international market.

Users turned the spearhead to Indian manufacturer, said the tight supply resulted from the halted production of steel mills. Uttam Steel thought that India restricted the HRC import, coupled with some steel mills in India shut off the equipment this month and working at non-full capacity, which all led the HRC supply down. Uttam Steel consumed HRC of 80,000 tons every month. However, steel mills believed the tight supply attributed to the huge inventory replenishment before the price rising. Because the Indian domestic HRC price was lower than the international price and the delivery time shortened to one month, costumers had began to require to supply goods with a large quantity, that is, to purchase HRC from the domestic steel mills to reduce the risks aroused from the price fluctuation. The price of the imported HRC is U.S.$ 620 per ton (CFR) and the delivery time is after November. The price at that time is a doubt, so the risks are very high.

With the demand recovery, many steel mills in the world will begin to improve production. ArcelorMittal has restarted the three halted blast furnaces, and the inceasement in supply will make the international HRC prices decrease.