Flat Steel prices have corrected by INR 500-700/MT across major markets in India. SteelMint learned from market sources that deteriorating demand in the domestic market and falling imported offers have impacted domestic prices. Imported HRC of SS400B-grade is being offered at USD 500/MT CFR Mumbai for November shipment.
Although, there has been no official announcement for price cut by domestic steel manufacturers, dealers & stockiest are offering good discount amid low off-take. Imported offers in Mumbai have seen a major correction.
A trader here said, “We expect the domestic prices to fall further. Currently, we are getting imported offers from China at USD 490-500/MT CFR Mumbai for a minimum order of 5,000 MT. We are expecting a consignment from China within 3-4 days.”
Some trade sources in Mumbai confirmed that they have settled deals of imported HR Coils at INR 40,000/MT. Meanwhile, trading price in Faridabad/Delhi has also corrected by INR 500-700/MT M-o-M. IS 2062 grade HR Coils (2.5-3mm) are offered in the range of INR 40,800-41,500/MT. Trading volumes remain affected in the month of October owing to holidays. Dealers & traders here are expecting further correction in prices if demand did not improve in near-term.
Similarly, trading activities in Ludhiana remain subdued and prices have corrected in the range of INR 300-500/MT. Currently, HRC 2.5-3.0 mm is trading at INR 42,500/MT. Demand from pipe manufacturing units has been very low.
Chennai, which is an import oriented market for HRC & CRC, also encountered price corrections. Sources here said that prices were down by INR 300-500/MT in last week of October.
A local dealer based in Malayappan Street in Chennai said, “There has been no official intimation about any price change from manufacturers till now. Prolonged holidays and political instability led to a fall in sales volume in October. However, we expect volumes to improve this month. Currently, HR Coils is being offered in the range of INR 42,300-42800/MT”.
|
Import Price Calculation of HRC |
||
|
USD/MT |
INR/MT |
|
| 1.CIF MUM |
500 |
30,690 |
| 2. Assessable Value (CIFx1%) |
505 |
30,997 |
| 3. Custom Duty (7.5%) |
38 |
2,325 |
| 4. Sub Total (2+3) |
543 |
33,322 |
| 5. CVD/Excise Duty (12%) |
65 |
3,999 |
| 6. Cess on CVD/Excise Duty(3%) |
2 |
120 |
| 7. Cess on Customs |
3 |
193 |
| 8. Sub Total (4+5+6+7) |
613 |
37,634 |
| 9. Spl Addl Duty (4%) |
25 |
1505 |
| 10.Total Duty Payable (3+5+6+7+9) |
133 |
8,142 |
| 11.Total Ex-port Price(1+10) |
633 |
38,832 |
| 12.Port Clearance |
10 |
614 |
| 13.Total Landed Cost In Mumbai(11+12) |
643 |
39,446 |
Exchange rate@ INR 61.38/USD
All domestic prices mentioned in the article are inclusive of ED, VAT extra
Leave a Reply