Flat Steel traders have been mulling for price cut in this month due to dearth of demand in the market. As reported earlier, manufacturers were holding on to the prices of CRC products as there was good demand seen for these products across some trading regions. But, the chances for imports in Chennai may increase if domestic CRC prices refuse to cool off.
SteelMint interacted with some of the traders based in Chennai who are planning for imports in the near term. Trading in Chennai has been deeply affected due to slowdown in the economy.
There was some price cut announced for HRC in April, but no price changes were done for CRC products. Demand from the furniture segment has been strong and this kept the market going. Domestic prices continue to trade higher and thus some traders are planning to import CR products. A trader based in Chennai said,
We are currently getting offers from Japan for prime CR products at around USD 600-650/MT. But, importers are asking to book a minimum quantity of 500 MT in order to consider our bookings.
It is to be noted that offers for defective CR Coils from Japan was at USD 530-550/MT in April, whereas CR Sheets of 0.8 mm thickness was offered at USD 652/MT CFR Chennai. Another trader said,
We have received some good offers for imported CR and color coated products and we have been asked to place our orders by the end of May’14. But, we are waiting for the domestic manufacturers to announce their prices. We will take a stand only after considering the domestic prices and demand from our clients.
An industry expert in Chennai commented, It is not wise to compare an offer with that of an order as traders need to consider multiple factors before placing their orders. The foreign exchange rate is quite volatile at this point and given the political situation of the country, the uncertainties for traders are quite high. It will be difficult to assess how much traders will actually pay for the imported products when the consignment reaches them after 30-45 days of transit.
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