Indian importers have remained less active in booking HRC from source countries like China, Japan and South Korea. At present offers, domestic HRC is slightly cheaper by about INR 1000-1200/MT against HRC imported from Japan & South Korea.
However imported HRC from China is still costlier by about INR 5000/MT.
Currently Chinese HRC export offers are heard around USD 580-590/MT, FoB China. And HRC export offers from Japan and South Korea are at USD 580/MT, FoB and USD 585/MT, FoB respectively.
Also,market sources reported that Japanese and South Korean mills have become less active in export market and are not quoting any fresh export offers of HRC currently. The companies have less allocations for export since they are focusing more into the domestic market rather than global market.
As per POSCO Q3 CY17 results export ratio came down and domestic sales went up went up by whopping 53.7%.
POSCO’s completion of the revamping work at Pohang Works’ Blast Furnace #3 and other maintenance projects at the same facility was scheduled during the third quarter.
Meanwhile ,Hyundai Steel’s Dangjin plant had completely stopped due to an accident that occurred on 13 Dec’17. But company has resumed operations of its B and C hot rolling mill on 21 Dec’17. However hot rolled and reinforced steel lines located in A-Z zone continues to remain close as the same are still undergoing safety inspections. The resumption time of these units are unknown.
Landed cost of HRC imported from China,Japan,Korea to India
| Landed cost of HRC imported from China,Japan,Korea to India | |||
| Particulars | China | Japan | Korea |
| CIF (USD/MT) | 605 | 615 | 620 |
| BCD in % | 12.50% | 0.00% | 0.00% |
| CIF+BCD (in USD ) | 680 | 615 | 620 |
| Safeguard duty | Not applicable as CIF prices is greater thanreference prices of USD 445/MT, @ 10% till 13 Mar 2018 | ||
| Anti Dumping Duty (As per recent recommendation by DGAD for definitive duty for HRC) |
Not applicable as CIF prices is greater thanreference prices of USD 489/MT | ||
| Port Handling (in USD) | $20 | $20 | $20 |
| Miscellaneous expenses | $5 | $5 | $5 |
| Total in USD | 705 | 640 | 645 |
| Total in INR | 45,120 | 40,960* | 41,280* |
| Current Prices in Domestic Market | |||
| Ex-Mumbai (basis prices excluding GST 18%) | 40,000 | ||
| Premium/Discount | 5,120 | 960 | 1,280 |
HRC prices mentioned are of Re-rolling grade
*Japanese & Korean mills have limited allocations therefore they are not actively quoting offers in open market
1USD = 64 INR
SteelMint Research
Currently domestic HRC prices of major manufacturers are hovering around INR 40,000/MT (ex-Mumbai ),GST extra @18%.
However major Indian steel mills have already planned to hike prices by about INR 1000-1500/MT in Jan’18. It will be interesting to see will the price hike result in change in market scenario ?
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