Indian flat steel traders and stockists are anticipating a fall in domestic HRC (Hot Rolled Coil) prices on account of low buying interest.
Indian manufacturers had raised their offers by INR 1,000-1,200/MT (USD 15-18/MT) in the month of May on better export realizations. But with falling global HRC offers, export realizations for Indian manufacturers are going to drop in coming weeks.
Current offers for HRC (IS 2062) of size 2.5 mm are assessed at around INR 36,000-36,500/MT (incld Excise of 12.5%) in north India and around INR 35,500-36,000/MT (incld Excise of 12.5%) in west India.
Indian manufacturers raise HRC prices by around 18-22% post MIP
Following imposition of a minimum import price (MIP) on a range of steel products in the month of Feb’16 , Indian manufacturers have raised their offers by 18-22% since then.
Note: Prices are including Excise of 12.5%.
Chinese HRC export offers fall
Chinese HRC export offers have dropped sharply this week owing to short selling by Chinese suppliers. Offers have corrected by over USD 50/MT in last one week. Current offers for HRC (SS400) are assessed at USD 410-420/MT, FoB China against USD 460-470/MT last week.
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