According to SteelMint analysis the landed cost of HRC from (China,Japan and South Korea) will stand at INR 40,00-41,000/MT. On the other hand domestic prices of HRC in flat steel market are hovering in the range of INR 41,500/MT (inclusive of excise duty 12.5%).
Therefore landed cost of HRC to India has become cheaper by INR 850-1300 /MT as compared to domestic prices. Hence there is very narrow scope for Indian steel players to further increase the domestic flat steel prices.
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) | 475 | 540 | 530 |
| BCD in % | 12.50% | 0.00% | 0.00% |
| CIF+BCD (in USD ) | 534 | 540 | 530 |
| Safeguard duty | Not applicable as CIF prices is greater than refrence prices of USD 445 |
||
| Anti Dumping Duty(As per recent recommendation by DGAD for definitive duty for HRC is at USD 489) |
Not applicable as CIF prices is greater than refrence prices of USD 489 |
||
| Port Handling (in USD) | $20 | 20 | 20 |
| Miscellaneous expenses | $5 | $5 | $5 |
| Total in USD | 560 | 565 | 555 |
| Total in INR | 36,120 | 36,440 | 35,800 |
| Countervailing Duty (12.5%) | 4,515 | 4,555 | 4,475 |
| Landed Cost in INR | 40,635 | 40,995 | 40,275 |
| Current Domestic HRC prices in India | |||
| Ex-Mumbai(inclusive of excise Duty 12.5%) | 41,500 | ||
| Premium/Discount | 865 | 505 | 1,225 |
1 USD=64.5 INR
Source: SteelMint Research
Global HRC Export Market Updates – Week 16
1. Chinese HRC export offers have fallen sharply by USD 30-35/MT W-o-W. Currently offers are assesed at USD 440-445/MT, FoB China. Export offers have declined in line with fall in domestic steel prices in China and increased inventories.
2. HRC export prices from CIS nations has also weakened this week by USD 30-35/MT W-o-W. Current offers are at USD 440-460/MT, FoB Black Sea.
3. Facing stiff competition from cheaper Chinese HRC exports offers, Japanese steel makers have also reduced offers. Presently HRC export offers from Japan are heard at USD 480-500/MT, FoB Japan.
4. Indian HRC export offers remain unchanged at USD 500-510/MT, FoB India.
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