The flat product market plummeted by an unusual 1% to 3% in Kanpur on 16th June raising many eyebrows. The accelerated depreciation in an already languishing market definitely had a catch.
Product Grade Size (mm) Change %
HRC Cold rolling 2x1000 0%
PLTS GRA 8x1.25 -1%
PLTS GRA 8x1.5 -1%
PLTS GRB 12-20x2.5 -1%
CR DSK 0.63x1000 -1%
CR DSK 0.8x1250 -1%
GP 120Gms -3%
GP 120Gms 0.63 -3%
GP 120Gms 1 -3%
GC 120Gms -3%
GC 120Gms 0.63 -3%
It is prevalent that the flat product market in India has been purging since end April after an unprecedented rally in the wee months of 2010 by an average of INR 8000 per tonne. The tumble of up to 9% is unprecedented by any yardstick.
Category 26-Apr 16-Jun Change %
PI � Narrow Plates 8129 7419 -711 -9%
PI - Wide Plates 8481 7891 -589 -7%
PI - Hot Rolled 8306 7659 -647 -8%
PI - Cold Rolled 9358 8755 -603 -6%
PI - Galvanized 9205 8411 -794 -9%
PI - Product Index
(Source: www.steelprices-india.com)
The steel majors have already announced a price revision of INR 1500 per tonne to INR 3000 per tonne on 1st June are yet to breathe reprieve ever since as the demand remains feeble in all quarters.
However during the course of the month the decline has accelerated signaling a hidden speculative agenda. It is learnt that the most of the steel majors are already doling out rebate to the tune of INR 500 per tonne to INR 1000 per tonne over an above the reduction.
It is learnt that most of the dealers and MOU customers already having availed of the quantity based rebate are aspiring for an enhancement in the last week of June. Since the hiked rebate will be applicable on total monthly off take it will bloat the flimsy margin at their end. End users on the hindsight are expectant of this rebate being passed over. Hence they are opting to withhold even residual buying till the dust settles in the process further gravitating the prices.
The debacle in Kanpur is replicated all over India in varying degrees indicative of its omnipresence.
www.steelprices-india.com is a comprehensive portal that provides domestic pricing information for benchmark steel products in each category at select location in India on a regular basis 5 days a week and international price levels on a weekly basis.
As steel in each category comes in hundreds of grades shapes and sizes, we have taken benchmark products in each category at select locations to cover the entire basket of garden variety of steel products including input material for steel making and processing.
Products covered
1. Input materials - Iron ore, scrap, sponge iron, pig iron pencil ingot, billets and blooms
2. Long products - Rebar, wire rod, angle, channel and joists
3. Flat products - Narrow plates, wide plates, HR, CR and galvanized
4. Others - Pipes
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2. Base prices or effective, as per market trends
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4. On fixed market oriented payment terms
5. Daily updates
6. Data available since July 2008
5. Access through web site
Price basis
Without ED and VAT for all products except for rebar and sections
The prices are displayed on weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available.
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Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news.
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Thursday, June 17, 2010
Flat product prices crash in Kanpur on expected rebate
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