At present state of affairs, Indian Flat steel producers have rolled over their prices for May deliveries. Depreciating Indian currency and a minor improvement in buying activities seem to be the major factors for rollover in prices. Current offers are hovering in the range of INR 34,500-36,500/MT (including Excise, excluding VAT,dealers price) and ex-factory realizations comes out to be around INR 29,500-30,000/MT.
A senior executive of one of the largest Steelmakers said, “At present, Flat steel prices remain unchanged. 2.5 mm HRC is being offered at around INR 34,500/MT (excluding VAT) in Mumbai and INR 36,000/MT + VAT in Chennai. Prices are unlikely to decline from these levels.”
Another Steelmaker based in East India has also mentioned that prices are sustaining at the same level of INR 35,500-36,000/MT ex-Kolkata (excluding VAT).
Market participants are hopeful that Indian HRC prices should stay firm in coming weeks due to maintenance at SAIL’s (Bokaro) HR mill. The plant will be closed for about 20 days in May.
Import Offers firming up
It is assessed that import offer from China, Japan & Korea is firming up. Current offers for 2 mm HRC of commercial quality are assessed at USD 395/MT from China and around USD 420-425/MT from Japan/Korea on CIF India basis for June shipment. However, buying interest remains weak looking at high prices and depreciating Indian currency.
[su_quote]”Chinese mils have raised offers amid rising Iron ore prices. Current offers for commercial quality HRC is around USD 370/MT, FoB China and around USD 395-400/MT, CIF India for June shipment. Similarly, prices from Korean mills have also gone up slightly, with offers hovering in the range of USD 415-425/MT, CIF India. Last offers from Hyundai, Korea were heard to be at USD 420-425/MT, CIF India,” said an importer based in Mumbai.[/su_quote]
It is to be noted that import duty from China is 7.5%. Whereas, import from Korea attracts a duty of 1.25 % and 0.8% from Japan.
2.5 mm HRC Offers as on 5 May’15
| Particular | Offers in INR/MT |
| Ex-Mumbai | 34,500-35,000+ VAT |
| Ex-Delhi | 36,000 + VAT |
| Ex-Chennai | 36,000+ VAT |
| Ex-Kolkata | 35,500-36,000 + VAT |
| Particular | Offers in USD/MT |
| FOB India Commercial grade | 390-395 |
| FOB India CR grade | 405 |
| CIF India -2.5 mm, China | 395 |
| CIF India – 2.5 mm, Korea | 420-425 |
Source: SteelMint Research
India’s Steel Production, Import, Export and Consumption in FY15
| Month | Import | Export | Consumption | Steel Production for Sale |
| Apr’14 | 503 | 452 | 5,680 | 6,991 |
| May’14 | 574 | 551 | 6,949 | 7,912 |
| Jun’14 | 587 | 424 | 6,193 | 7,110 |
| Jul’14 | 546 | 419 | 5,712 | 6,919 |
| Aug’14 | 808 | 508 | 6,614 | 7,591 |
| Sep’14 | 840 | 341 | 5,982 | 7,153 |
| Oct’14 | 883 | 505 | 6,005 | 6,884 |
| Nov’14 | 821 | 397 | 5,504 | 7,099 |
| Dec’14 | 930 | 469 | 6,676 | 7,538 |
| Jan’15 | 1,003 | 528 | 7,480 | 10,510 |
| Feb’15 | 986 | 396 | 6,407 | 7,104 |
| Mar’15 | 840 | 511 | 7,161 | 7,879 |
| Total | 9,321 | 5,501 | 76,363 | 90,690 |
Quantity in “000 MT
Source: JPC
Note: Above data are of Finished alloy and Non-alloy steel
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