Imported Hot Rolled Coil (HRC) offers to Indian market observed a downfall of USD 10/MT W-o-W amid sharp fall in Chinese export offers.
Current offers for 2 mm SS400 grade (which is used by tube makers) have fallen to USD 335/MT, CIF India. Some Chinese mills have heard to be offering the same grade at USD 325-330/MT, CIF India for bulk bookings.
On the other hand, HRC offers from Korea and Japan have also corrected in same line. It is to be noted that Korea and Japan contributes over 50% of India’s total flat steel import owing to low rate of import duty, which comes under Free Trade Agreement (FTA).
Current offers for Korean HRC are assessed at USD 375-380/MT, CIF India, which was USD 385-390/MT last week. However, buying interest is seen at USD 350-360/MT levels.
Indian HRC Prices will Remain under Pressure
Indian HRC prices will continue to remain under pressure on cheaper imports and negligible exports from Indian manufacturers. Domestic prices have already corrected over INR 1,500/MT in last quarter and INR 3,000/MT from year to date.
Indian manufacturers have rolled over prices for July but have increased discounts. Some mills are offering additional discounts on bulk quantity booking. Indian 2.5 mm HRC prices are assessed at INR 33,500-34,000/MT (including Excise) in Mumbai and INR 34,000-34,500/MT (including Excise) in Delhi.
Trade-wise
1. Chinese SS400 (Tube grade) HRC offers assessed at USD 330-335/MT, CIF India. Some steel mills are offering further discounts on bulk bookings
2. Korean steelmaker offers assessed at USD 375-380/MT, CIF India; buying interest seen at USD 350-360/MT, CIF
3. Indian HRC prices are in the range of INR 33,500-34,500/MT (including Excise); NSR comes out to be INR 28,000-28,500 (ex-factory)
4. Indian steelmakers are unwilling to cut down their export offers to USD 400/MT FoB, which has led to fall in export volumes
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