Falling HRC Import Offers worry Indian Steelmakers

After a day when the Prime Minister of India hosted his ‘Make in India’ campaign, imports of cheaper Chinese Flat products continue to bother domestic manufacturers. Imported offers to India have come down significantly. Moreover, growing uncertainties for supply of raw materials like Coal & Iron ore seem to add on to the woes of the domestic steel manufacturers.

Currently, HR Coils from China are offered at around USD 530/MT CFR India. Steel prices have been in pressure owing to increasing imports from South Korea and China. Domestic HR Coils are trading in the range of INR 42,500-43,000/MT*. Whereas, imported offers are at around INR 41,500-42000/MT.

Similarly, HR Coils of 3-6 mm from South Korea are offered within USD 560-575/MT. SteelMint learned from market sources that Indian importers are taking interest in Chinese offers.

Cheaper imports of Flat products have distorted the market dynamics in Mumbai. A dealer from Carnac Bunder in Mumbai commented, “The difference between wholesale price and retail price has narrowed down significantly. Volume of trading has taken a plunge and sales of domestic Flat products are under pressure. Except for project based requirements, which comply with stricter quality norms, demand in the domestic market has been quite poor.”

Industry veterans believe this as a grim situation. The domestic steel manufacturers have made several representations to the steel ministry regarding the concern of cheaper import of finished steel products. However, no such concrete measures have been taken so far to shield the domestic market from cheaper imports. Domestic HRC prices have remained almost at the same levels with minor discount offered in trading prices in North market.

*All domestic prices include Excise duty; taxes extra