Indian steel importers turned active and have booked 20,000 MT HRC last week from South Korea for November end or early December shipments. As per trade sources report to SteelMint, the deal prices is assessed around USD 605/MT CFR India. However the material is booked at Southern India and is expected to arrive at Chennai port.
Thus, as per our understanding, landed cost of imports for this deal would stand around INR 46,500-47,000/MT (ex-Chennai).However domestic price of HRC in traders market is hovering around INR 47,500/MT (Ex-Chennai,basic prices,GST extra @ 18%).
Meanwhile as per SteelMint previous report,Indian Mills Book Japanese HRC for November shipments.Southern India based importers have booked around 26,000 MT HRC of varying thickness around 10 days back from Japan in range of USD 605-610/MT, CFR India for November-December shipment.
It is to be noted that India has signed FTA for ten years with Japan and South Korea which provide an exemption from duties on imports coming from the two countries, thus making it preference over Chinese origin HRC.
Indian importers turned active after Indian steel mills hiked domestic flat steel prices by INR 1000-1500/MT, on the other side Japanese HRC export offers have come down making imports cost effective and a prefereble choice. Global flat steel prices have witnessed downturn with decline in bids from importing countries.
Indian flat steel imports in 9M CY18- India imported 4.45 MnT of flat steel in first nine months of CY18.Out of which Korea exported 0.25 MnT of flat steel to India in Jan-Sep’18.Although India imported 1.85 MnT HRC/plates during Jan-Sept’18, down 4% against same time period in last year.
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