Amid sluggish global steel demand India’s HRC exports have come down by 70% in last one month from 46,328 MT in Dec’15 to 13,779 MT in Jan’16. However if we analyze Y-o-Y drop in India’s HRC exports then the percentage fall stand at 93% from 2,05,007 MT in Jan’15 against 13,779 MT in Jan’16.
With slowed down investment majorly in infrastructure sector due to falling consumer demand, China resorted to cheap exports to various countries including India.
Other nations like Korea, Japan and Russia also followed the suit by exporting steel to India at quite competitive rates. However Indian manufacturers failed to match the cheaper global offers in the light of high logistic and interest costs.
India’s HRC (2.5mm) export offers have remained high and unchanged at USD 305-310/MT, FoB India since last three weeks whereas Chinese offers are assessed at USD 275-280, FoB China, USD 290-295/MT FoB Japan/Korea and at USD 255/MT FoB CIS region.
Indian steel majors are currently not interested in HRC exports due lower sales realizations from exports as compared to domestic market. Also once again the talks of MIP likely to be announced on 5 Feb’16 have made the manufacturers hopeful of higher realizations from domestic market in coming future.
“There is not much buying interest for Indian HRC in offshore market owing to its high prices. However Indian companies are also not ready to lower down their export offers and are focusing more on the domestic market”, quoted a market participant based in Mumbai.
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