Major Korean steel mill have reduced HRC export offers for Indian steel importers this week by USD 10-15/MT for October end shipments. They are offering at USD 625/MT CFR India. Market sources shared with SteelMint that, Indian importers have booked around 25,000 MT of HRC (2mm) from Korea at USD 620-625/MT, CFR India for October end shipments.
Thus as per our understanding landed cost of (HRC 2mm) is coming around USD INR 46,800/MT (ex-Mumbai).
Previous HRC export offers were heard in the range of USD 640-645/MT CFR India. Prior to this,Indian importers booked around 20,000 MT of HRC from Japan by the end of last month at USD 645/MT CFR basis for Oct end early Nov shipments.
Indian mills are actively importing HRC from Japanese and Korean mills in anticipation of higher prices of domestic HRC in coming months.Meanwhile improved demand in domestic market also boost imports of HRC to India.
Indian Importers choose Japanese/Korean HRC over FTA-It is to be noted that India has signed FTA for ten years with Japan and South Korea which provide an exemption from duties on imports coming from the two countries, thus making it preference over Chinese origin HRC.
Meanwhile post imposition of USA tariffs on Japan and South Korea steel, export volumes are being diverted to India.Thus resulting to increase in import volumes of steel in India.
South Korea exported 12% of flat steel to India in Jan-Jul’18-As per the data maintained with SteelMint, Korea exported 12.73 MnT of flat steel in first seven months (Jan -Jul) of CY18.Out of which nation has exported 1.48 MnT of flat steel to India which is third largest importer of Korea,occupied the share of 12% in Jan-Jul’18.
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