Global prices of API grade hot rolled coils have remained flat for the last fortnight. India steel manufacturers and importers have hence continued to defer procurements at the current high price levels.
Current offers from South Korea for X70 grade API HRCs stand at around $1,180-1,190/tonne (t) CFR Kandla. For X70 grade API HR plates, there are no allocations from Korea.
The latest offers from Japan for X70 API plates stand at $1,450/t CFR Kandla.
“These high prices are not workable for Indian pipe manufacturers to buy and sell,”a trader said.
In China, there is still a lack of clarity in export tax announcements. Further, increased marine freight rates and logistical disruptions due to Covid-19 have led to production cuts across mills. There is no current allocation for India, as reported by sources.
Offers from the domestic suppliers are cheaper and thus more viable compared to the import offers for the API X70. Domestic offers are assessed at around INR 74,000-75,000/t ($1,013 -1,027/t).
Manufacturers are facing an unprecedented challenge in laying down API pipelines because of the restricted steel supplies for various projects which were primarily dependent on raw material from overseas markets.
Owing to cash flow constraints, surge in steel prices, and tight steel allocations globally, the execution of pipeline is getting delayed quite a bit, SteelMint understands from market sources.
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