Imported CRC offers, especially from China have plunged further owing to their sluggish domestic demand and bearish sentiment.
Current offers for CRC (0.90 mm thickness) is assessed at USD 340/MT from China, and around USD 450/MT from Korea on CNF India basis.
Chinese players are selling their oversupply in foreign markets because of lack of domestic demand and absence of any stimulus by Chinese government to drive market.
Chinese CRC exports also rose by about 25% in August according to Chinese customs data. In August, exports were recorded at 5,13,000 MT which was around 4,13,000 in July.
Safeguard duty impact
Indian government’s safeguard duty announcement on certain hot rolled products are likely to hurt CRC manufacturers. As safeguard duty is not imposed on CRC, importers are likely to focus more on cold rolled coil imports.
The end user segment like CRC and white goods manufacturers are showing agitation against the safeguard duty imposition. With 20% duty, imported HRC prices are likely to go up, which will indirectly hurt their input costs.
However, if the import offers continue to fall in similar fashion, the effect of safeguard duty is likely to be negated.
Indian CRC export offers un-competitive
Indian exporters are unable to compete with cheap Chinese and Russian cargoes. CRC (0.9 mm thickness) export offers stand high at USD 410/MT, FOB India basis.
Stable domestic offers
As per trade sources, prices are stable in domestic CRC market. Current offers for 0.9 mm CRC is assessed in the range of INR 36,500-37,000/MT (ex-Mumbai), INR 38,000/MT (ex-Delhi) and INR 37,500/MT (ex-Chennai). All prices including excise of 12.5%.
“With falling Chinese offers, there is little scope for Indian HRC/CRC players to increase their prices,” said a trader based in Mumbai.
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