Weak domestic demand and currency depreciation is driving Chinese steel players to lower down their CRC prices.
Imported CRC offers from China and CIS countries fell down in the range of USD 5-10/MT because of sluggish demand. Current CRC (0.5-1.5 mm) offers from China is being assessed in the range of USD 340/MT, FoB China and USD 355-365/MT, CNF India basis. Japanese and Korean CRC offers assessed at USD 415-420/MT, CNF India basis are bit expensive as compared to Chinese offers.
However, it may be noted that Chinese imports attract import duty of 12.5% whereas, import duty on Japanese and Korean products are as low as 1% and 0.8% respectively. Russia is offering CRC in the range of USD 370-380/MT, FoB basis.
Weak domestic demand is forcing Chinese players to offer cheaper exports in foreign shores. Also, with recent Yuan depreciation, exports have become more lucrative for Chinese manufacturers.
Indian CRC is being traded in the range of INR 38,000-38,500./MT (ex-Delhi) and at INR 36,500/MT (ex-Mumbai). All prices include excise of 12.50%.
Safeguard duty impact unlikely on CRC
Safeguard duty is likely to be imposed on hot rolled products and it will hardly impact import of CRC. If safeguard duty is levied, importers will focus more on CRC import and the price gap between HRC and CRC may be reduced.
Source: SteelMint Research
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