Indian exporters hold HRC offers this week despite low buying interest and wait for the financial year to end in March.
Current offers for CR grade HRC (2.5mm) are assessed at USD 415-420/MT FOB India and tube grade at USD 405-410/MT FOB India.
HRC export offers from Indian manufacturers continue to remain non-competitive in the global market as orders reduce and offers from Chinese, Korean and Russian mills become cheaper. Indian HRC export offers fell by USD 10-15/MT last month.
However, Indian mills are reluctant to cut offers as Net Sales Realization (NSR) from exports will be quite lower as compared to domestic sales. If domestic NSR would be at INR 31,000/MT, the NSR from exports will be around INR 26,000-26,500/MT.
Indian Flat Steel Exports down Y-o-Y
According to the latest data released by Joint Planning Committee (JPC), Indian flat steel exports declined by almost 5% in FY15 (April-Feb’15) as compared to FY14 (April-Feb’15).
| India’s Flat steel Export (in ‘000 MT) | |||
| FY15(Apr-Feb) | FY14(Apr-Feb) | % Growth | |
| Plates | 396.6 | 127.6 | 210.8 |
| HR Sheet | 51.7 | 80.7 | -36.0 |
| HR Coil/Strip | 1,203.4 | 1,572.8 | -23.5 |
| CR Coil/ Sheet | 520.8 | 494.9 | 5.2 |
| GP/GC Sheet/Coil | 1,495.4 | 1,586.9 | -5.8 |
| ELECT. Sheet | 8.2 | 2.7 | 206.7 |
| Total | 3,676.2 | 3,865.6 | -4.9 |
Source: JPC
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