Buying interest for Chinese imported HRC has taken a hit due to uncertainty for extension of rebate offered to exporters. Imported HRC offers are in the range of USD 480-485/MT.
Last week, SteelMint reported that imported HRC prices of Chinese origin gained some stability. But, buyers are restraining from taking any advance position as they are worried, if the rebate offered to Chinese steel exporters are withdrawn, the importer has to bear the additional 9-13% cost which is likely to affect their margins. It is learnt from a Chinese exporter that they have stopped to take bookings for boron added Steel products for January shipping due to this uncertainty of rebate.
Meanwhile, domestic manufacturers in India have also been very aggressive by tweaking their pricing. As per local traders in Mumbai, SAIL is offering HRC of 5-10 mm at as low as INR 39,500-40,000/MT. Whereas, imported HR Coils are offered in the range of INR 38,000-39,000/MT. Secondary HRC from Ukraine were offered at USD 450-455/MT CFR levels.
“Although, imported offers are quite attractive at present, we are not convinced at the levels at which rupee is trading and have not taken any position for January as of now,” said a Trader in Mumbai.
Market participants also mentioned that Indian HRC prices may find support owing to falling currency and some stability in global prices.
Ruble Impact
The Russia exchange rate Ruble has breached the 60 per USD levels. This steep fall in exchange rate is expected to improve the offers from Russian companies in the international market. Experts believed that we may see price volatility in the next few weeks.
Current offers from CIS countries are assessed at USD 480/MT CFR, India for small shipments and about USD 470/MT CFR based on quantity.
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