Low demand and decent imports have forced Indian flat steel producers to offer discounts to an extent of INR 1,000/MT (USD 16). Current offers for 2.5mm HRC assessed at INR 34,500-35,000/MT (Incld Excise) at Mumbai, Delhi and Chennai. Which means net sales realization for a manufacturer on ex-factory basis would be around 28,500-29,000/MT (Excluding excise and freight).
“Demand has been very poor in last few months owing to cheaper imports. We are offering discount upto INR 1,000/MT to our dealers. Current price for 2.5 mm HRC is INR 35,000/MT (Incld Excise) and 0.9mm CRC at around INR 38,500/MT (Incld Excise) at Chennai.” confirmed a sales executive with one of the big steel mills.
In similar lines, a tube manufacturer based in Hyderabad confirmed to have received discounts upto INR 1,000/MT in last week of previous month.
Imported Offers
Imported offers of prime grade HRC are assessed at USD 410/MT (from Korea), 370-380/MT (from China) and around 365-375/MT (from Russia) on CIF India basis.
Imported CRC offers of 0.9mm are assessed at USD 490-500/MT (From Korea/Japan) and USD 450/MT (from China) on CIF India basis.
2.5 mm HRC Prices as on 3rd June’15
|
Particular |
Excluding Excise |
Including Excise |
| Ex-Mumbai |
31,100 |
35,000 |
| Ex-Delhi |
31,300 |
35,200 |
| Ex-Hyderabad |
30,700 |
34,500 |
| Ex-Chennai |
31,100 |
35,000 |
| Ex- Tatanagar |
30,200 |
34,000 |
Indian Flat Steel Imports and Export Update:
According to JPC, Indian flat steel imports noticed a downfall of 12% in the month of April, where as exports noticed a downfall of 21% in April. CRC imports noticed significant drop in April, which stood at 89,460 MT in April against 148,000 MT in March.
On the other hand CRC exports from India increased by 35% in April. Total exports recorded was 79,580 MT, against 59,130 MT in March.
|
India’s Flat Steel Import (in ‘000 MT) |
|||
| Flat Products |
April’15 |
March’15 |
% Change |
| Plates |
95.35 |
82.1 |
16 |
| HR Sheets |
3.66 |
14 |
-74 |
| HR Coil/Strip |
227.62 |
246.6 |
-8 |
| CR Coil/Sheets |
89.46 |
148.2 |
-40 |
| GP/GC Sheets/Coil |
37.45 |
30.3 |
24 |
| Elect. Sheets |
27.12 |
26 |
4 |
| Total |
480.66 |
547.2 |
-12 |
|
India’s Flat Steel Export (in ‘000 MT) |
|||
| Flat Products | April’15 | March’15 | % Change |
| Plates |
32.66 |
74.71 |
-56 |
| HR Sheets |
3.46 |
3.34 |
4 |
| HR Coil/Strip |
59.3 |
116.12 |
-49 |
| CR Coil/Sheets |
79.58 |
59.13 |
35 |
| GP/GC Sheets/Coil |
129.62 |
133.27 |
-3 |
| Elect. Sheets |
1.17 |
1.13 |
4 |
| Total |
305.79 |
387.7 |
-21 |
All are Non Alloy steel
Source: JPC
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