Domestic HRC manufacturers slashed their HRC export offers by USD 15/MT. Currently IS2062 grade (2.5 mm) HRC is being offered at USD 315/MT, FoB India. This price cut is in the light of cheaper HRC Offers from China, Japan/Korea and CIS countries.
However there is no major buying interest at this levels owing to sluggish demand and presence of cheaper HRC especially from China.
Presently the net sales realization (NSR) from exports (at USD 315/MT) is around INR 20,500-21,500/MT whereas NSR from domestic sales is around 24,500-25,000/MT on ex-factory basis.
Also NSR from domestic sales have declined by 17% since Apr’15. The same was in the range of INR 29,500-30,500/MT in Apr’15 against 20,500-21,000/MT in Dec’15.
India’s total HRC exports have registered a fall of 74% from 59,300 tonnes in Apr’15 to 15,740 tonnes in Oct’15. In a recent investor’s conference call, SAIL reported that its total export volume fell by 71% Y-o-Y basis.
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