Indian HRC exporters continue to hold HRC offers this week despite low buying interest and competitive offers from Chinese, Russian and Japanese manufacturers.
Current offers for CR grade HRC (2.5 mm) assessed at USD 390-395/MT, FoB India. No major transactions have been recorded in the month of April.
A senior executive from a trading house based in Mumbai said, “Indian offers are not competitive at the moment. Global buyers are preferring Russian, Korean or Japanese material. However, looking at currency devaluation, we expect exporters may cut offers.”
Net Sales Realization (NSR) from export will be around INR 25,000-25,500/MT. Whereas, domestic realizations would be INR 29,000-30,000/MT on Ex-factory basis (prices excluding excise of 12.5%).
Indian manufacturers have rolled over Flat steel prices for the month of May. Current offers for 2.5 mm HRC are assessed at INR 34,500/MT Ex-Mumbai and INR 36,000/MT Ex-Chennai (prices including excise of 12.5%).
Net Sales Realization Calculator
| Particular | Charges | |
| Domestic Price (Inclusive ED) | INR 36,000/MT | |
| Export Offers in FoB | USD 395/MT | |
| USD/INR Rate | 64 | |
| Particular | Domestic Realization | Export Realization |
| Domestic Price | 36,000 | NA |
| (Less) Freight | 1,200 | NA |
| (Less) Excise Duty (12.5%) | 3,900 | NA |
| (Less) Dealers margin | 1,000 | NA |
| Net Sales Realization (INR/MT) | 29,900 | 25,280 |
Realization in INR/MT
Source: SteelMint Research
In FY15, out of the total 4,064,000 MT Flat steel, India had exported 1,320,000 MT HR Coil/Strip, 55,000 MT HR sheets and 471,000 MT of Plates.
Indian Flat Steel Export (in
| Particular | FY15 | FY14 | %Growth |
| Plates | 471 | 155 | 205 |
| HR Sheets | 55 | 86 | -36 |
| HR Coil/Strip | 1,320 | 1,723 | -23 |
| CR Coil/Sheets | 580 | 536 | 8 |
| GP/GC Sheets/Coil | 1,629 | 1,782 | -9 |
| Elect. Sheets | 9 | 3 | 212 |
| Total | 4,064 | 4,285 | -5 |
Source: JPC
All are non alloy steel
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