Indian HRC prices, which declined by INR 2,500/MT in last 3 months, are expected to find support post import duty hike of 2.5%.
Domestic HRC prices in last 3 months have corrected by INR 2,500/MT. Market participants except that prices will find support after import duty hike of 2.5% by Indian government. There is mixed response in the market as some feel this will help to restrict import in medium to long term. However, some believe that this will have limited impact on domestic prices as import will continue from Japan and Korea. These nations are covered under Foreign Trade Agreement and duty remains unchanged for them.
Indian Prices
Currently, 2.5 mm HRC is being traded in the range of INR 34,000-35,000/MT (including Excise of 12.5%) across the country.
An importer based in Mumbai said, “We were expecting manufacturers to cut offers for July deliveries owing to weak demand and cheaper import, but they may not. Increased import duty will make Chinese and Russian import dearer by about USD 10/MT. Current offers from China are assessed at USD 365/MT, Korea and Japan at USD 390-395/MT on CFR India basis for July end shipments.”
Monthly Average 2.5 mm HRC Prices
| Particular | Taxes | Jun’15* | May’15 | Apr’15 | Mar’15 |
| Ex-Delhi | Incld Excise | 35,300 | 36,000 | 37,000 | 37,700 |
| Ex-Mumbai | Incld Excise | 34,500 | 35,500 | 36,700 | 37,500 |
| Ex-Chennai | Incld Excise | 35,000 | 35,800 | 36,600 | 37,500 |
*Jun’15, Avg prices from 1-15 Jun’5
Excise @ 12.5%
China Contributes 20% of Flat Steel Import to India
China contributes 20% of total flat steel import to India. According to Joint Plant Committee, Ministry of Steel, total HRC import in FY15 was recorded at 2.08 MnT. Out of this, 0.42 MnT was imported from China, 0.70 MnT was from Japan, 0.60 MnT from Korea and rest from other nations.
Total CRC import in FY15 was 1.7 MnT, out of which 0.26MnT was from China, 0.27MnT was from Japan, 0.65 MnT from Korea. While, total plate import in the fiscal was 0.7 MnT, out of which China contributed 0.23 MnT, Japan contributed 0.09 MnT and Korea 0.14 MnT.
Flat Steel (HR,CR & Plates) Import to India in FY15
| Countries | FY15 | % Share | Current Offers | Rate of Import Duty |
| Korea | 1.39 | 31% | 390-395 | 1.25% |
| Japan | 1.06 | 24% | 390-395 | 0.8% |
| China | 0.91 | 20% | 365 | 10% |
| Russia/Ukraine | 0.35 | 8% | 370-375 | 10% |
| Others | 0.77 | 17% | – | 10% |
| Total | 4.48 | 100% | – | 10% |
Quantity in MnT
*For ASEAN countries import duty is NIL
Offers in USD/MT on CFR India basis for 2mm HRC (commercial Grade)
Source: JPC
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