Recently in the beginning of the month majority of Indian steel manufactures announced cut in domestic HRC & CRC prices by INR 1500/MT for December deliveries. Weakening offers for imported HRC from major exporting nations like Japan, Korea and China resulted to competitive price of landed cost compared to domestic prices.
| Landed cost of HRC imported from China,Japan,Korea to India | ||
| Particulars | China | Japan |
| CIF (USD/MT) | 515 | 560 |
| BCD in % | 12.50% | 0.00% |
| CIF+BCD (in USD ) | 579 | 560 |
| Anti Dumping Duty (As per recent recommendation by DGAD for definitive duty for HRC is at USD 489) |
Not applicable as CIF prices is greater than reference prices of USD 489/MT |
|
| Port Handling (in USD) | $20 | $20 |
| Miscellaneous expenses | $5 | $5 |
| Total in USD | 604 | 585 |
| Total in INR (1 USD = INR 70.7) | 42,700 | 41,360 |
| Current Domestic HRC prices in India | ||
| Ex-Mumbai (basis prices excluding GST 18%) |
44,500/MT GST @18% | |
| Premium/Discount | 1,800 | 3,140 |
HRC prices mentioned are of Re-rolling grade
SteelMint Research
Chinese HRC export offers have come down by around USD 50-60/MT in Nov’18 against last month amid high inventories and falling domestic prices. This resulted in sharp plunge in landed cost of imports to India. Its landed cost is assessed around INR 42,500-42,700/MT.
Japanese HRC offers to India were assessed around USD 560/MT, CNF India for January for which landed cost would come around INR 41,000/MT.
Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 44,500/MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.
Thus it can be inferred that domestic prices in India are still trading at a premium against landed cost of imports.
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