Safeguard duty announced in Sept’15 brought some restrictions in HRC imports. However, Chinese offers continue to fall post safeguard duty owing to which domestic prices in India still remain under pressure.
In October, Indian Rupee also gained some strength against USD, which is making imports more viable to buyers in India.
The landed cost of imports from China is still cheaper against domestic HRC prices. Thus, it seems that impact of safeguard duty is almost mitigated.
Current offers for 2.5 mm (grade IS2062) HRC is being assessed at INR 33,200/MT (-300; ex-Delhi), INR 33,000/MT (ex-Kolkata), INR 32,500/MT (ex-Mumbai) and INR 33,000/MT (ex-Chennai). All prices include excise of 12.5%.
SAIL (Bokaro) resumes production in October
SAIL’s Bokaro plant (capacity of 4.36 MnT), which had been closed since last three months due to maintenance activity, has started its production again from Oct’15. Thus, it is expected that supply of HRC/CRC will increase in domestic market by next month.
With additional supplies, prices in domestic market are likely to correct further in coming month.
Leave a Reply