According to SteelMint’s analysis, landed cost of imported HRC (from China, Japan and South Korea) will stand at INR 45,000-47,000/MT.
On the other hand, after recent price hike of INR 3,000/MT by major Indian steel makers, domestic HRC prices in India are seen hovering at INR 41,500-42,000/MT (inclusive of excise duty @ 12.5%).
Hence, it can be figured out that landed cost of imported HRC to India is costlier by around INR 3,000-5,500/MT than prevailing domestic prices.
Therefore Indian steel makers have scope of increasing prices so as to come in par with landed cost of imports. If domestic demand supports, Indian steel makers may go for another price hike in the near term.
Below is the cost comparison table of landed cost of imported HRC from different origins to India versus domestic prices.
| Landed cost of HRC imported from China,Japan,Korea to India | |||
| Particulars | China | Japan | Korea |
| CIF (USD/MT) | 530 | 570 | 560 |
| BCD in % | 12.50% | 0.80% | 0.63% |
| CIF+BCD (in USD ) | 596 | 575 | 564 |
| Safeguard duty | Not applicable as CIF prices is greater than refrence prices of USD 504 | ||
| Anti Dumping Duty | Not applicable as CIF prices is greater than Non injurious prices of USD 474 | ||
| Port Handling (in USD) | $20 | 20 | 20 |
| Miscellaneous expenses | 5 | 5 | 5 |
| Total in USD | 621 | 600 | 589 |
| Total in INR | 41,918 | 40,500 | 39,758 |
| Countervailing Duty (12.5%) | 5,240 | 5,062 | 4,970 |
| Landed Cost in INR | 47,158 | 45,562 | 44,728 |
| Current Domestic HRC prices in India | |||
| Ex-Mumbai(inclusive of excise Duty 12.5%) | 41,500 | ||
| Premium/Discount | 5,658 | 4,062 | 3,225 |
HRC prices mentioned are of Re-rolling grade
SteelMint Research
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