Indian GP/GC Prices Rise amid Recovery in Domestic Market

After the announcement of anti-dumping duty on flat products in the month of Aug’16, the domestic manufacturers have increased their products prices effectively by INR 4,000-4,500/MT.

Current offers for HDG (Hot dip galvanized) coil (0.8mm and above, IS 277) are assessed at INR 41,500-42,000/MT (ex-works basis; excluding excise of 12.5%) and at INR 47,000-47,500/MT (ex-Delhi; including excise of 12.5%.

Although, anti-dumping duty is not imposed upon GP/GC, it comes under the purview of MIP (Minimum Import Price) thus, restricting imports. But India is a net exporter of GP/GC as country’s GP/GC exports exceeds its imports.

In first five months of financial year 2016-17 (from Apr to Aug’16), the country has imported 0.22 MnT of GP/GC while exports stand to be higher at 0.41 MnT.

India’s export offers for HDG (Hot-dip galvanized) coil are currently being assessed at USD 730-740/MT, FoB India. UAE, European and African countries are the target markets for India’s HDG exports.

India’s GP/GC consumption in 2016 from Jan to Aug’16 stands at 4.04 MnT, up by 8.90% against corresponding period of previous year 2015.

Global Offers

China’s HDG export offers  are priced at much lower rates at USD 520-525/MT, FoB basis. Thus, Indian exporters faces tough competition from Chinese material in UAE region. UAE’s import prices from China are heard at USD 540-550/MT, CFR basis.

HDG Export Prices as on 22 Sep’16