Indian Traders Resume HRC Import Over High Domestic Prices

Supply constraints in the domestic market due to high export orders coupled with increased domestic flat products prices drive Indian buyers to make import bookings.

The imposition of trade barriers like MIP and anti-dumping duty by the Indian government in the start of the current year helped to restrict cheaper imports into India to a good extent. From Feb’16 (when MIP was introduced) till date, India’s flat steel import have registered a fall of 34% against the corresponding period of previous year.

This has helped Indian manufacturers to improve their position in the domestic market. Post anti-dumping duty imposition in the month of Aug’16, Indian manufacturers have raised their domestic flat products prices by INR 6,000-6,500/MT, making imports viable for Indian buyers even after the imposition of various duties.

As per market sources, buyers from India have booked an HRC (grade API 5L) import shipment of around 40,000-50,000 tonnes in the end of Sep’16 at the rate of USD 420-425/MT, CNF India. As the imported, API grade material is exempted from safeguard duty, buyers are required to pay customs duty, countervailing duty, and anti-dumping duty. The landed cost of import for the same comes at INR 38,500-39,000/MT, which is almost equivalent to domestic HRC prices in India.

After the global HRC prices increased over past three months, Indian manufacturers booked good quantity of HRC export order, resulting in supply constraints in the domestic market. Due to non-availability of material in the domestic market, buyers in India booked HRC import orders from countries like Iran and China.

In the case of exports, Indian HRC is being offered at USD 430-435/MT, FoB India basis. However, as per trade sources, no deals are currently taking place at these rates.

China’s HRC export offers have registered an increase of USD 10-15/MT this week amid improved domestic market sentiments. Current HRC offers from China are assessed at USD 385-390/MT, FoB China basis.

HRC offers from CIS countries are heard at USD 395-400/MT, FoB Black Sea, up by USD 5/MT against last week.

HRC Prices as on 18 Oct’16