With the news of MIP being delayed by the government, domestic HRC prices registered a fall in the range of INR 500-750/MT in the second week of Jan’16.
Current offers for 2.5 mm HRC (IS2062) are being assessed at INR 30,800/MT (ex-Delhi), INR 29,500/MT (ex-Mumbai) and INR 30,500/MT (ex-Chennai). Prices include excise of 12.5%.
“After price rise in first week of Jan’16, negative sentiments have once again engulfed the Indian steel circuit and market participants are now eyeing budget FY 17 which is to be announced in Feb’16”, quoted one of the trader based in Delhi.
In order to control cheap imports majorly from China, Korea, and Japan, Indian government was likely to impose MIP on steel imports. With MIP anticipation, prices of flat steel started moving upwards.
However recently Commerce minister, Ms.Nirmala Sitharaman quoted that government is not in a rush to announce MIP on steel imports thus crushing the hopes of Indian steel makers.
The steel ministry was strongly pitching for imposition of MIP but Commerce ministry was not much in favour of this move as it has the potential of generating black money and inflate illegal trade.
Indian steel makers are bearing huge losses and their profitability has been badly hit this year. Owing to huge debt they have asked the government for a comprehensive steel package which will also include one-year moratorium on payment of interest and principal amounts.
Imported offers
HRC offers from China have remained stable against last week at USD 270-275/MT, FoB China. While offers from Korea and Japan are assessed at USD 280/MT FoB and from CIS region at USD 255/MT FoB Black Sea.
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