Firm import offers and restrictions in HRC imports due to safeguard duty led to stability in domestic HRC prices post Diwali festival.
It was anticipated that HRC prices in domestic market would fall post Diwali. However, prices remained firm post festival, majorly due to stability in imported offers from China, Japan and Korea.
In November, Chinese HRC prices didn’t plunge with the same pace as previous months. This is owing to supply control measures like production cuts and plant closures undertaken by Chinese steel mills.
“Chinese sellers have now become reluctant to bargain below a particular price level and are not ready to give immediate delivery of products”, quoted a Mumbai based importer.
Current offers for 2.5 mm (IS2062) HRC are assessed at INR 31,500-32,000/MT (ex-Mumbai), INR 32,500/MT (ex-Kolkata and Delhi) and INR 33,000/MT (ex-Chennai). All prices include 12.5% excise.
Safeguard duty announced in September also helped to bring stability in domestic prices as it brought some restrictions in HRC imports.
The total quantity of flat steel imported in first half of November fell by 55% as compared to the same period of previous month. According to provisional data based on customs records, HRC imports stood at 46,104 MT from 1-15 Oct’15.
“Prices are likely to correct by INR 500-1,000/MT in Dec’ 15, after which there is less likelihood that prices will fall further”, quoted a trader based in Delhi.
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