Indian HRC exporters are keeping their export offers unchanged despite low buying interest owing to better domestic sales realisations.
Indian HRC exporters continue to remain non-competitive in the global market by holding HRC export offers at relatively higher level as compared to export offers from countries like China, Japan and Korea.
Current offers for 2.5 mm grade HRC is being assessed at USD 350/MT, FOB India basis, whereas Chinese offers for same grade are at around USD 280/MT FOB, and Korean and Japanese are operating at around USD 310-320/MT FOB levels.
“There is no major buying interest for Indian HRC at current export offers. Buyers are preferring cheaper offers of China, Japan, and Russia. A handful of trades from India were reported to Europe”, said a global trader based in Mumbai.
Post safeguard duty, domestic and imported HRC prices have achieved parity. As per trade sources, safeguard duty sentiment have brought some restrictions in imports and Indian buyers have turned their focus towards domestic offers.
Thus steel manufacturers in India have become more keen in selling in domestic market. Selling in domestic market is also offering them better sales realizations here.
Net sales realization (NSR) from exports will be in the range of INR 22,500-23,000/MT, whereas domestic sales realizations would be in the range of INR 27,000-28,000/MT.
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