Indian HRC Exporters Hold Offers in Safeguard Duty Anticipation

Companies are unwilling to lower their prices below variable costs of the products just to win export orders.

Indian HRC manufacturers have chosen to remain non-competitive in the global market by holding their HRC prices at higher level as compared to offers from other HRC exporting countries. Current offers for 2.5 mm HRC is being assessed in the range of USD 370-375/MT, FOB India basis; whereas, the same is being offered at USD 300-305/MT, FOB China and USD 330/MT, FOB Japan/Korea and USD 310-315/MT FOB Black Sea.

As per market sources, companies are unwilling to lower their prices below variable costs of the products just to win export orders. With the news of safeguard duty doing rounds in the market, Indian manufacturers are anticipating some restriction in cheap import influx. Higher production cost and better sales realizations are forcing Indian players to focus on domestic market. Net Sales realizations from exports are in the range of INR 24,000-25,000/MT; whereas, domestic sales fetch realizations in the range of INR 27,000-28,000/MT.

Source: SteelMint Research

Fall in HRC exports

Due to premium pricing of HRC, a fall in exports was registered in the month of July. It declined from 51,400 MT in June 15 to 44,100 MT in July 15.

Quantity: In MT
Source: JPC