Chinese suppliers have cut MS plate offers by USD 5-10/MT this week amid fall in domestic Chinese prices and to offset increased import duty by Indian government. It is to be noted that Indian government has recently raised import duty on flat products by 2.5% (from 7.5% to 10%) last week.
Current offers for commercial grade (A36) MS plate are in the range of USD 360-365/MT CIF India, which were USD 370/MT last week. High tensile plate offers are in the range of USD 410-420/MT, CIF India.
On the other hand, POSCO-Indonesia has kept their offers unchanged at USD 405/MT, CIF India for commercial grade plate and USD 440-445/MT, CIF India for high tensile plate. Steel import from ASEAN countries has been exempted from import duty because of foreign trade agreement with Indian government.
In FY15, Indian plate import was recorded at 700,000 MT, out of which Chinese contribution was 230,000 MT, Korea was 140,000 MT and rest from other countries.
Indian Buyers Avoid Chinese Offers
Indian importers are avoiding Chinese plate offers owing to uncertainly in BIS (Bureau of India Standard) norms, which accounts for mandatory registration. Most of the Chinese mills do not have BIS certification. Cargo will not be cleared at Indian port if a steel supplier or importer does not hold this license.
Quite a few Chinese suppliers have applied for this certificate, but it generally takes a year to get certified with Indian Bureau of Standards.
Indian Manufacturers Hold Offers
Indian plate manufacturers have hold their offers in the range of INR 29,000-29,500/MT on ex-works basis for commercial grade (IS 2062). Manufacturers are hopeful that increase in import duty and strict BIS norms will help to control import from China.
Total Indian flat steel import was recorded at 1.13 MnT in April and May. Out of which 0.23 MnT was MS plates and rest was others.
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