Indian domestic Hot Rolled Coil (HRC) prices may come down in the month of April, owing to cheaper imports from Korea and China. Current offers for Indian IS 2062 grade are assessed at INR 36,500-37,500/MT (Incld Excise; VAT Extra).
“Cheaper imports from Korea and China is a serious concern for Indian steel mills. HRC offers from China are at around USD 400-405/MT and from Korea at around USD 430-440/MT CIF India for April/May shipments. Landed cost of imports is cheaper by at least INR 3,500/MT (USD 56)” said a manufacturer based in western India.
Market participants also blame sluggish demand and lower exports from India, that may lead to price cut in April.
1. Cheaper Imports: Price difference between imported and domestic HRC is around INR 3,500-4,500/MT. Importers will capitalize on cheaper imports.
2. Lower Exports from India : Another reason is falling exports of HRC from India due to lower realizations. Indian HRC export offers are at around USD 415-420/MT FoB, which gives a realization of INR 25,500-26,500/MT against domestic realization of INR 31,000/MT. Manufacturers may cut prices to compete with import parity prices.
Indian Domestic HRC Prices
| Particular | Prices |
| Delivered Delhi | INR 37,000-37,500/MT + VAT |
| Delivered Mumbai | INR 37,000/MT + VAT |
| Delivered Chennai | INR 37,000-37,500/MT + VAT |
| Delivered Kolkata | INR 36,500-37,000/MT + VAT |
| Chinese Exports to India | USD 395-405/MT, CIF India |
| Korean Exports to India | USD 430-440/MT, CIF India |
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