Korean and Japanese HRC exporters’ offers remains unchanged to Indian market. Increasing offers from Chinese exporters may push Indian importers to prefer Korean and Japanese cargoes.
HRC import offers in India remained the same as compared to last week. Trade sources reported that currently Chinese HRC is being offered at USD 330-335/MT, CNF India. While, Japan and Korea are offering the material at USD 370/MT, CNF India for September shipments.
In order to deal with increasing air pollution from steel mills, the Chinese Department of Environmental Protection imposed stricter environmental laws, resulted in production curtailment of steel. This in turn led to slight increase in HRC prices last week. Now, Chinese steel manufacturers have kept prices stable in anticipation of further price rise owing to low supply in near future. Current offers for commercial grade (SS400) HRC are around USD 315/MT, FoB Chinese port, which was USD 310/MT last week.
Domestic HRC offers
There is mixed response in Indian market. Some steelmakers have cut their offers by INR 700/MT, while, some have maintained it at the same levels on anticipation that government may impose safeguard duty to protect domestic industry.
As reported, currently 2.5 mm HRC offers are assessed at INR 33,000/MT (ex-Mumbai) and INR 33,500/MT (ex-Delhi, ex-Chennai and ex-Kolkata). All prices including Excise duty.
“Subdued demand in domestic market is affecting the steel industry more than the influx of cheaper import from China. Only rise in domestic demand can give some boost to descending steel prices in the Indian market,” said an owner of one of the largest trading house based in Mumbai.
“Even no amount of safeguard duty can prevent the glooming steel industry without simultaneous increase in demand,” he further added.
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