Indian HRC manufacturers continue to hold HRC offers this week despite low buying interest and competitive offers from Chinese, Russian and Japanese manufacturers.
Current offers for IS 2062 grade HRC (2.5 mm) assessed at USD 415/MT, FoB India and USD 405-410/MT for commercial grade; similar to last week’s offer. No major transactions have been recorded in the month of April. Some traders are also offering SAE1008 grade HRC at USD 390-395/MT FOB India West Coast.
A senior executive from a trading house based in Mumbai said, “Indian manufacturers are reluctant to cut offers looking at higher cost of production and better realizations in the domestic market. Offers are assessed at around USD 410-415/MT for premium grade and USD 405/MT for commercial grade on FoB India.”
Net Sales Realization (NSR) from export will be around INR 25,500-26,000/MT. Whereas, domestic realizations would be INR 29,500-30,500/MT on ex- factory basis.
Indian HR Coil prices declined in the retail market in April. Current offers for HRC 2.5 mm assessed at INR 36,000-36,500/MT (including freight cost and excise duty of 12.5%).
Net Sales Realization Calculator
| Particular | Charges | |
| Domestic Price (Inclusive ED) | 36,500 | |
| Export Offers in FoB | 415 | |
| USD/INR Rate | 63.3 | |
| Particular | Domestic Realization | Export Realization |
| Domestic Price | 36,500 | NA |
| Freight | 1,500 | NA |
| Excise Duty (12.5%) | 31,111 | NA |
| Dealers margin | 1,000 | NA |
| Net Sales Realization (INR/MT) | 30,111 |
26,270 |
Realization in INR/MT
Source: SteelMint Research
Flat Steel Prices as on 30 Apr’15
| Particular | Prices |
| HRC, India | USD 410/MT, FoB India |
| CRC, India | USD 460-465/MT, FoB India |
| HRC, China | USD 370/MT, FoB China |
| HRC, Russia | USD 360-365/MT, FoB Black Sea |
| CRC, Russia | USD 450/MT, FoB Black Sea |
Source: SteelMint Research
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