Imported HRC offers to Indian market have fallen further by USD 5/MT this week. Sluggish demand in global market coupled with currency depreciation has made exporters to cut their offers.
Trade sources confirmed HRC from Japan being traded at USD 395-400/MT, CIF India. While, offers from Korea are assessed at USD 400-405/MT, CIF India. Chinese offers are around USD 375/MT, but Indian importers ditch Chinese cargo owing to BIS (Bureau of Indian Standard) norms.
“Some trades for Japanese HRC have been reported at USD 395/MT, CIF India, which is very competitive as compared to China & Korea. Chinese offers are not less than 375/MT CIF India and Indian importers are not interested at this level due to mandatory of BIS norms,” said an importer based in Mumbai.
Indian HRC import was recorded at 230,000 MT in the month of Apr’15. Cheaper import has poised a big threat for Indian steelmakers. There has been no official price cut by Indian producers, but companies are offering discount to dealers in order to increase sales. Current offers for 2.5 mm HRC are assessed at INR 34,500/MT (Including Excise of 12.5%; VAT extra).
Import Calculation
| Particular | USD/MT | INR/MT |
| CIF MUM | 405 | 25,920 |
| Assesable Value (CIFx1%) | 409 | 26,179 |
| Custom Duty (1.2%) | 5 | 314 |
| Sub Total (B3+B4) | 414 | 26,493 |
| CVD/Excise Duty (12%) | 50 | 3,179 |
| Cess on CVD/Excise Duty(3%) | 1 | 95 |
| Cess on Customs (B4+B6+B7x3%) | 2 | 108 |
| Sub Total (B5+B6+B7+B8) | 467 | 29,876 |
| Spl Addl Duty (4%) – Refundable | 19 | 1,195 |
| Total Duty Payable (B4+B6+B7+B8+B10) | 76 | 4,891 |
| Total Ex-port Price | 481 | 30,811 |
| Port Clearance | 20 | 1,280 |
| Total Landed Cost in Mumbai (Incld CVD and SAD) | 501 | 32,100 |
| Domestic Prices in Mumbai (Incld Excise and VAT) | – | 35,900 |
2 mm HRC from Korea at USD 405/MT CIF India
Import duty @ 1.2%; USD 1 = INR 64; Mumbai VAT at 4%
Source: SteelMint Research
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