Indian steelmakers have rolled over flat steel prices for July deliveries amidst hike in import duty and proposed BIS norms, which will curb rising import.
Current offers for 2.5 mm HRC are maintained at INR 34,500-35,000/MT (including Excise of 12.5%) in Delhi and INR 34,500/MT (including Excise) in Mumbai. At this price, Net Sales Realization (NSR) for a manufacturer comes out to be INR 28,000-29,000/MT (ex-factory, excluding excise and taxes).
To curb rising import, Indian government raised import duty on steel products by 2.5% on 16 June’15, although Chinese exporters have cut their offers in order to offset increased duty.
Monthly Averageg Prices of 2.5 mm HRC
|
Particular |
Taxes | Jun’15* | May’15 | Apr’15 |
Mar’15 |
| Ex-Delhi |
Incld Excise |
35,300 | 36,000 | 37,000 | 37,700 |
| Ex-Mumbai |
Incld Excise |
34,500 | 35,500 | 36,700 | 37,500 |
| Ex-Chennai |
Incld Excise |
35,000 | 35,800 | 36,600 | 37,500 |
*Avg prices from 1-20 Jun’15
Excise included @ 12.5%
BIS will Restrict Import
Under the proposed Steel and Steel Products (Quality Control) Order, 2015, the government is set to bring several steel products under a mandatory Bureau of Indian Standards (BIS) registration. Most of the companies, especially Chinese are not registered with BIS and it generally takes 8-10 months to get certification. Market is bullish that this will help control import from China and Russia.
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