Indian Hot Rolled Coil (HRC) importers prefer to wait and watch on weak demand and slow off take in domestic market. Importers highlight that despite cut in offers by Chinese exporters, Indian buyers are not very keen.
“Current offers from China for 2.5mm commercial grade HRC is around US$570-570/t and from Ukraine at around $575/t CFR Mumbai in containers. We are not comfortable importing it at the moment as it will cost us around Rs 34,000-35,000/t + duty + taxes (delivery after 1 month) where as domestic market is hovering around Rs 34,500-35,500/t + duty + taxes.” said Mr Shah, an importer based in Mumbai.
Over all demand is weak from construction and capital goods segment. Above that liquidity is a major issue in the market, he further added.
On the other hand HRC prices in global market have corrected almost $5-7 per tonne in last 10 days on falling scrap and iron ore prices in global market. Current offers from Ukraine stands at around US$530-540/t FOB Black Sea and US$570-580/t CFR Turkey.
Note:1US$=Rs 54.35
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