Indian HRC Export Offers Down by USD 20-25/MT M-o-M

Subdued demand and cheap offers from China, Japan and Korea have forced Indian manufacturers to lower their HRC export offers.

In order to compete with cheap HRC from China, Japan and Korea, Indian manufacturers have cut down their HRC export offers by USD 20-25/MT against last month, according to sources.

Current offers for 2.5 mm HRC (IS2062) are being assessed at USD 290-295/MT, FoB India basis. India’s HRC exports have been increasing marginally since last three months. It is recorded at 0.23 MnT in Sep’15, 0.25 MnT in Oct’15 and 0.26 MnT in Nov’15.

Recently JSW has exported around 21,500 MT HR coil from Goa port to Malaysia at an average price of USD 291/MT FOB, according to customs data.

However with subdued demand in global steel industry, it is to be seen whether there will be buying interest for India’s HRC export offers.

Global HRC Export Offers Stable

HRC offers in global market seems to have stabilized. Current offers for HRC from China are assessed at USD 255-260/MT FOB, Korea and Japan at around USD 270-280/MT FOB and CIS region at USD 255/MT FOB Black Sea.

Indian buyers have become reluctant to book steel imports in anticipation of Minimum Import Price (MIP).

Also recently government has made BIS license compulsory for all steel Imports which will be applicable from 18 Mar’2016. This is adversely going to impact imports especially from China as only three Chinese mills have got BIS certification.

Most mills from Korea have BIS certification whereas Japanese mills are in the process of getting the same.

India’s Port-wise Flat Steel Exports from 1-19 Dec’15

Quantity in tonnes
Source: Provisional Customs Data

2.5 mm HRC Offers as on 23 Dec’15

Source: SteelMint Research