Indian HRC importers turn active after domestic mills continue to raise offers.Notably domestic steel mills have increased their HRC offers by INR 4500/MT in last 3 months owing to global factors.
This gives enough room for imports as at these prices anti dumping and safe guard duties are not applicable. Although size-able volumes are unlikely as global prices remain strong and there are not many offers from Japanese and Korean mills.
Market participants mentioned that buyers from India have booked an HRC shipment of around 40,000 MT from South Korean steel mills in the end of Aug’17- starting of Sep’17 in the range of USD 600-605/MT CNF India.
Indian steelmakers Rises Flat steel Prices by INR 2000/MT over rising production cost-Major Indian mills have increased the flat steel prices by INR 1500-2000/MT for September bookings over surge in raw material prices.Currently domestic HRC prices in Mumbai are hovering around INR 40,000 (GST extra @18%)
On the other hand global steel prices also continues to remain on higher side after Chinese Bengang BF incident resulting in costlier imports.
The landed cost of imports to India is in range of INR 46,300-52,200/MT.Also HRC imports from South Korea is at par with domestic HRC prices pushes the Indian manufacturers to increase flat steel prices in domestic market.
Calculation of landed cost of imports vs domestic prices
| Landed cost of HRC imported from China,Japan,Korea to India | |||
| Particulars | China | Japan | Korea |
| CIF (USD/MT) | 595 | 590 | 600 |
| BCD in % | 12.50% | 0.00% | 0.00% |
| CIF+BCD (in USD ) | 669 | 590 | 600 |
| Safeguard duty | Not applicable as CIF prices is greater than reference prices of USD 445/MT |
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| 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 reference prices of USD 489/MT |
||
| Port Handling (in USD) | $20 | 20 | 20 |
| Miscellaneous expenses | $5 | $5 | $5 |
| Total in USD | 694 | 615 | 625 |
| Total in INR | 44,277 | 39,237 | 39,875 |
| Countervailing Duty (18%) | 7,969 | 7,063 | 7,178 |
| Landed Cost in INR | 52,247 | 46,300 | 47,053 |
|
Current Domestic HRC prices in India |
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| Ex-Mumbai (basis prices excluding GST 18%) | 40,000 GST @18% | ||
| Including GST@18% | 47,200 | ||
| Premium/Discount | 5074 | (900) | (147) |
HRC prices mentioned are of Re-rolling grade
SteelMint Research
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