CRC offers to India have fallen by USD 5/MT due to aggressive selling by Chinese sellers.
Imported CRC offers to India fell by USD 5/MT this week, with offers assessed at USD 440/MT from China, USD 485-490/MT from Japan and around USD 495/MT from South Korea for August shipments. It is to be noted that Indian government charges an import duty of 7.5% on Chinese material, 1.2% on Korean material and 0.8% on Japanese material.
“Chinese sellers are quite aggressive in Indian market. Current offers are assessed at around USD 435-440/MT, CIF India. Indian government’s rule for mandatory of Bureau of India Standards (BIS) norms will be applicable in two month’s time. Chinese sellers want to clear their position before the registration is made mandatory”, said an owner of a large trading house in Mumbai.
Low Imported Offers Pressurize Domestic Prices
Lower import offers have put pressure on Indian CRC prices. Traders in Chennai are heard to be offering imported CRC at INR 38,000/MT (including Excise, Excluding VAT). While, Indian manufacturers are offering CRC at INR 38,500-39,000/MT (including Excise, Excluding VAT) in Chennai.
Market participants highlighted about weak demand and liquidity issue. Most of them believe that if situation persists for next week, Indian manufacturers may review their prices.
CRC Prices as on 16 June’15
| Particular | Prices in INR/MT | W-o-W |
| Ex-Ludhiana | 40,500 | 0 |
| Ex-Chennai | 38,500 | 0 |
| Ex-Mumbai | 38,500 | 0 |
| Particular | Offers in USD/MT | W-o-W |
| CFR India (Export from China | 440 | – 5 |
| CFR India (Export from Japan) | 485 | – 5 |
| CFR India (Export from Korea) | 490 | – 5 |
| FoB Black Sea | 450 | 0 |
*Indian prices including Excise of 12.5%, VAT Extra
Source: SteelMint Research
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