India’s CRC Export Increases amid Favorable Market Conditions

Surge in Chinese flat steel export prices and anti-dumping duty imposition on steel import from China & Russia by EU have led to increased interest of Indian exporters especially in European market.

In a latest update in the Indian steel circuit, SteelMint has heard that domestic steel players have become more active in CRC export market by offering CRC at quite competitive rates.

Increase in Chinese Export Prices

Chinese export offers of flat products have been rising since the start of year 2016. The reason being mills’ reluctance to lower their export offers amid bullish sentiments in domestic steel market.

Current offers for 1.0mm CRC from China are being heard at USD 355-360/MT, Fob basis.

However Chinese traders are not confident about sustainability of positive sentiments in the domestic market as latest price increase is supported by production cut rather than any upturn in demand.

Trade Barriers by EU (European Union)

Recently, EU has imposed provisional anti-dumping duty in the range of 12-26% on cold-rolled flat products from China and Russia in order to prevent the dumping of cheap steel imports.

It has been reported that China’s CRC exports in Jan’16 were down by 37% Y-o-Y basis at 0.03 MnT owing to various overseas trade protection measures.

Benefit to Indian Exporters

Taking advantage of this situation, Indian CRC manufacturers such as POSCO-India and JSW Steel have started participating in CRC’s export market. Current export offers of 0.9mm CRC from India are assessed at USD 340-350/MT, FoB India basis.

Although MIP has been imposed on steel imports,  POSCO-India is importing cheap HRC from its parent company in Korea under Advance license scheme, processing it to CRC and exporting it to the international market.

An advance license is issued under Duty Exemption Scheme of India’s EXIM policy, which allows duty-free import of any input for goods production meant for export purpose.

India’s CRC exports which was 23,054 tonnes in Sep’15 surged by 71% to 39,615 tonnes in Jan’16 while as per customs data, in eighteen days till 18 Feb’16, India exported about 32,071 tonnes of CRC.

CRC Prices as on 24 Feb’16

Source: SteelMint Research