According to SteelMint analysis the landed cost of HRC from (China,Japan and South Korea) will stand at INR,45,000-47,000/MT. On the other hand domestic prices of HRC in traders market are hovering in the range of INR 41,000/MT (exclusive of excise duty 12.5%).
Therefore landed cost of HRC to India is costlier by INR 3,600-6,500/MT as compared to domestic prices. This will provide enough room for the Indian steel makers to raise the flat product prices in the domestic market.
Below is the cost comparison table of landed cost of imported HRC from different origins to India versus domestic prices.
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Landed cost of HRC imported from China,Japan,Korea to India |
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| Particulars | China | Japan |
Korea |
| CIF (USD/MT) | 540 | 580 | 570 |
| BCD in % | 12.50% | 0.00% | 0.00% |
| CIF+BCD (in USD ) | 608 | 580 | 570 |
| Safeguard duty | Not applicable as CIF prices is greater than refrence prices of USD 504 | ||
| Anti Dumping Duty | Not applicable as CIF prices is greater than Non injurious prices of USD 474 | ||
| Port Handling (in USD) | $20 | 20 | 20 |
| Miscellaneous expenses | 5 | 5 | 5 |
| Total in USD | 633 | 605 | 595 |
| Total in INR | 42,221 | 40,354 | 39,687 |
| Countervailing Duty (12.5%) | 5,278 | 5,044 | 4,961 |
| Landed Cost in INR | 47,499 | 45,398 | 44,648 |
| Current Domestic HRC prices in India | |||
| Ex-Mumbai(inclusive of excise Duty 12.5%) | 41,000* | ||
| Premium/Discount | 6,499 | 4,398 | 3,648 |
*Ex-Mumbai HRC Prices is Trader’s Price
Source-SteelMint Research
Chinese HRC export offers up on domestic steel price gains
Chinese mills have raised the HRC export offers by USD 10-15/MT on account of bullish sentiments prevailing in both domestic and global market. As the hike in HRC export offers in the global market have forced the overseas buyers to accept the increased prices.
Current HRC export offers are hovering in the range of USD 515-525/MT,FoB basis, However last week offers were assessed in the range of USD 505-510/MT,FoB basis.
Indian HRC export offers at USD 505/MT, FOB
Indian manufacturers have started exploring export options owing to lacklustre demand in the domestic market. Although Indian exporters are exporting HRC in the range of USD 505/FoB. Thus,HRC import offer to Vietnam are heard in the range of USD 515/MT,CFR basis.
HRC Export Offers from Japan & CIS nations –
CIS-origin HRC export offers are heard to be in the range of USD 475-480/MT,FoB Black Sea. Whereas export offers from Japan are in the range of USD 535-540/MT,FoB Japan.
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