POSCO-Maharashtra Lowers its CRC Export Offers amid Global Downtrend

After keeping its prices unchanged for more than a month, POSCO-Maharashtra has lowered down its CRC export offers amid weak buying interest from overseas buyers coupled with presence of cheaper offers from China and CIS countries.

The company’s CRC export prices have corrected by USD 30-35/MT and currently CRC (0.9mm SPCC) is being offered at USD 510-530/MT, FoB India basis.

India’s CRC offers are much higher than what China and CIS countries are offering. CRC (1.0 mm SPCC) offers are heard at USD 400-405/MT, FoB China whereas CIS countries CRC offers are assessed at USD 460-465/MT, FoB Black Sea.No fresh offers are being heard from Japan and Korea.

Price advantage for Indian CRC Exporters

European Union (EU) and US are two countries with highest per capita steel consumption. Thus majority of steel exports are targeted to both the countries.

However, as steel is being dumped at cheaper rates especially from China, Japan, Korea and Russia, thus, affecting  importing  countries’ domestic steel industry, EU and US has imposed trade barriers and has also launched anti-dumping duty investigations against the above mentioned steel exporting countries.

At present, US has imposed anti-dumping duty as high as 265.79% for China’s CRC and 71.35% on Japanese CRC imports. While, anti-dumping duty investigations on Korean and Russian CRC imports are still in progress.

Even in case of EU, provisional anti-dumping duties has been imposed on Chinese (14-16%) and Russian (20-26%) CRC imports.

Owing to this, Indian mills have price advantage over Chinese and Russian offers and are able to sell their products at comparatively higher rates.

CRC Offers as on 10 Jun’16

Source: SteelMint Research