Imported HRC offers to Indian market have fallen further by USD 5/MT in week 25. Sluggish demand in global market coupled with currency depreciation has made exporters to cut their offers.
Trade sources confirmed, HRC from Japan is being traded at USD 390-395/MT, CIF India. While, offers from Korea are assessed at USD 395/MT, CIF India. Chinese offers have corrected to USD 365-370/MT. However, there has been no official confirmation for price correction by Indian producers.
“Some trades for Chinese HRC have been reported at USD 365/MT, CIF India, which is a result of falling exports from China. Chinese steelmakers are operating at very thin margins. While, Japanese offers are assessed at USD 390-395/MT, CIF India,” said an importer based in Mumbai.
Indian HRC import was recorded at 230,000 MT in the month of Apr’15. Cheaper import has emerged as a big challenge for Indian steelmakers.
Current offers for 2.5 mm HRC are assessed at INR 34,500/MT (including Excise of 12.5%; VAT extra) in Mumbai and INR 35,000/MT (including Excise of 12.5%; VAT extra) in Chennai & Delhi.
Import Calculation
| Particular | USD/MT | INR/MT |
| CIF MUM | 395 | 25,280 |
| Assessable Value (CIFx1%) | 399 | 25,536 |
| Custom Duty (1.2%) | 5 | 320 |
| Sub Total (B3+B4) | 404 | 25,856 |
| CVD/Excise Duty (12%) | 48 | 3,072 |
| Cess on CVD/Excise Duty(3%) | 1 | 64 |
| Cess on Customs (B4+B6+B7x3%) | 2 | 128 |
| Sub Total (B5+B6+B7+B8) | 455 | 29,120 |
| Spl Addl Duty (4%) – Refundable | 18 | 1,152 |
| Total Duty Payable (B4+B6+B7+B8+B10) | 74 | 4,736 |
| Total Ex-port Price | 473 | 30,272 |
| Port Clearance | 20 | 1,280 |
| Total Landed Cost in Mumbai (Incld CVD and SAD) | 493 | 31,550 |
| Domestic Prices in Mumbai (Incld Excise and VAT) | – | 35,360 |
2 mm HRC from Korea at USD 395/MT CIF India
Import duty @1.2%; 4% VAT in Mumbai
USD 1 = INR 64
Source: SteelMint Research
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