Correction in international prices and higher domestic prices has made much leeway for imports of Flat steel products. SteelMint while talking to dealers & importers of Flat products across India understood that higher domestic prices for HR Coils and supply constraints in the domestic market has been concern for many traders.
Although, few sectors of the economy have seen minor improvement in demand, but the actual trading volumes in the market has not yet recovered. Some market participants expect minor changes in prices if demand recovers. One of the importers in Mumbai while replying to an email query from SteelMint cited,
“There could be a price increase after the monsoons if demand picks up, but that is to be seen as although there is a positive outlook in the medium term, the short term is unpredictable.”
As per traders based in Mumbai, imported HR Coils of 2.2 mm thickness from Hyundai Steel is available at INR 38,500-39,000/MT on Ex-Plot basis which is almost close to domestic prices. One of the industry experts say that there is close difference between domestic & import prices. A revial in the domestic economy can spur imports thereby putting pressure on domestic prices.
Many traders across India believe that actual demand has not returned to the market and thus price hike is difficult. Manufacturers may prefer to roll over prices or offer discount at current market prices to battle with the slowdown in the domestic economy.
Import Dynamics
It is interesting to note that Cold Rolled products are in short supply across many trading regions in India and the imports of Cold Rolled products have gradually increased in the past few months.
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