Trade sources shared with SteelMint that recently Indian importers have concluded HRC deal from Japan for early Dec shipments.
Indian HRC importers have booked around 20,000 MT of HRC from Japan early this week at USD 585/MT, CFR basis.
Imported HRC offers reported significant drop of USD 15-20/MT against previous deal. Prior to this, in 3rd week of October, southern India based importers have booked around 26,000 MT HRC of varying thickness from Japan.The deal was concluded at around USD 605-610/MT, CFR India for November shipment.
Thus, as per our understanding,landed cost of imports for this deal would stand around INR 45,000/MT. However current HRC prices in traders market is hovering around INR 46,500/MT (Ex-Mumbai),basic prices,GST extra @ 18%). Major Indian steel mills have rolled over domestic prices for November, however it is indicated that they are likely to announce discounts to boost sales.
Thus steep decline in global prices propel importers to book material from Japan and Korea.
Indian HRC imports from Japan in Jan-Sep’18- Indian HRC imports from Japan stood at 0.79 MnT in Jan-Sep’18 and occupies the share of 18% in first nine months of CY18. Other major importers were Korea at 2.07 MnT and China at 0.51 MnT in Jan-Sep’18.
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