Safeguard duty is likely to restrict cheap HRC imports but CRC imports are expected to surge.
20% provisional safeguard duty on HRC (effective from 14 Sep’15 for a period of 200 days has brought some respite to Indian steel industry.
As per trade sources, domestic HRC prices are anticipated to increase marginally in the range of INR 500-700/MT for October deliveries. However, any drastic increase in prices is unlikely because of sluggish demand in the domestic market.
Current offers for 2.5 mm HRC are being assessed in the range of INR 32,500-33,000/MT (ex-Chennai), INR 32,500/MT(ex-Mumbai), and INR 33,000/MT(ex-Delhi). All prices include excise of 12.50%.
Imported offers for 2.5mm HRC are traded in the range of USD 290-295/MT from China, USD 305-310/MT from Black sea, USD 350-355/MT from Japan and Korea. All prices are on CNF India basis.
“Safeguard duty is likely to bring down HRC imports in the coming months. This will benefit steel players (ISP) like TATA Steel, JSW, SAIL and also domestic dealers and traders dealing in Indian HRC”, quoted a SAIL executive.
Domestic players have turned their focus towards HRC available in the Indian market post safeguard duty. However, as the duty is not imposed upon CRC, importers are now more keen on importing the same at cheaper rates from China, Japan and Korea.
End users i.e. CRC manufacturers and small scale units, which are engaged in annealing of HRC are showing their agitation against safeguard duty. This is because, with safeguard duty, their input cost is likely to shoot up.
SAIL (Bokaro) to resume production in October
SAIL’s Bokaro plant (capacity of 4.36 MnT), which was shut since last three months due to maintenance activity, is likely to start its production again from Oct’15. Thus, the supply of HRC/CRC will increase in the domestic market.
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