Indian Flat Steel manufacturers are selling HRC at much lower prices in international markets as compared to domestic market. Recent export offers for HRC are seen much below the domestic prices as manufacturers are seeing better realizations due to bulk sales.
Latest data reveals that bulk consignments of HR Coils are exported to countries like United Arab Emirates and Spain. As domestic market see no major price movements, producers are aggressively exporting to these countries at prices much below the domestic prices. The difference between domestic and international price is shown in the table below.
Consignments of HRC to UAE were settled at an average price of USD 539/MT (INR 33,418) for trade happening between 1 Dec. and 14 Dec. 2013. The average quantity traded was 1,056 MT. Similarly, consignments to Spain were settled between $ 534-$543/MT (Avg). It is to be noted that companies are offering quite attractive prices for bulk shipments as compared to smaller quantities.
Domestic prices of HRC however continue to remain far above the international prices. Basic Prices for HRC in Ludhiana was at INR 37,000/MT (USD 596) whereas in Delhi, the prices remained at INR 36,800/ MT (USD 593). Prices for Mumbai and Ahmedabad were at INR 37,600/MT (USD 606) and INR 38,900/MT (USD 627) respectively. Although, last import prices for HRC in Gujarat remained at USD 600-610/MT, there was no major import happening in Gujarat.
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