Indian HRC Export Offers fall by USD 10-15/MT

HRC export offers from Indian manufacturers continue to remain uncompetitive in the global market in the backdrop of falling orders from overseas market. HRC export offers reduced by USD 10-15/MT compared to last month. Current offers are in the range of USD 415-420/MT FOB India.

SteelMint learnt from exporters that Indian manufacturers are a bit reluctant to offer below USD 415/MT FOB, since their Net Sales Realization (NSR) 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.

“ We expect export offers in this month to be stable at these levels. Sales pressure is likely to continue and manufacturers will prefer to sell in the domestic market for better realizations” said an importer.

Inquiries from Mexico and South East Asian countries have reduced and this has been a concern for many exporters. Many believe that export offers are likely to fall further.

South Korean suppliers aggressively offer HRC to India

An importer shared with SteelMint that “HRC of 2mm from Hyundai Steel, Korea, is offered at USD 430/MT CIF Mumbai for April shipments (import duty is around 1% due to Free Trade Agreement). Meanwhile import offers from China are at USD 395/MT CIF (import duty is 7.5%)”.

HR Coils of Japanese origin is offered at USD 435-440/MT CIF India. Importers & Traders believe that Korean Steel makers like POSCO and Hyundai Steels have been quite active in Indian market and appeasing Indian traders with alluring offers. Domestic HRC is trading at INR 37,000-37,500/MT levels.

*Domestic prices are inclusive of ED, VAT extra