SteelOrbis has learned that Ilyich production ready stock HRC is being offered to the Indian market by a CIS trader at the price level of $430-450/mt CFR Mumbai, whereas Zaporishtal production ready stock HRC is being offered by a trader in the CIS to the Indian market at the price level of $460-480/mt CFR Mumbai. Meanwhile, HRC offers from China to India are standing at $530/mt CFR Mumbai, while Indian production HDG is being offered in the local Indian market at $800-870/mt ex-warehouse. All these prices are for November shipments.
HDG price levels have declined in this market compared to last week. 0.50-1.0 mm 120 gr/m² zinc coated material is currently at the abovementioned price level, which indicates an average drop of $65/mt compared to last week. India is an exporter of HDG; however, the tightening in the export markets has been putting pressure on the local Indian market price levels.
For now, the Indian rupee is seen to have recovered somewhat following its depreciation against the US dollar and euro - in the wake of the Central Bank's intervention. However, time is still needed for market players to believe that the rupee will remain stable in the future. Also, the difficulty in obtaining letters of guarantee and the increasing commission rates need to be overcome particularly in the developing markets. (It is heard that the Chinese banks are getting 15 percent commission on some letters.)
The abovementioned market situation has also been placing pressure on import prices to come down to more competitive levels. Thus, offers from Ukraine have declined by an average of $45/mt compared to the last week. However, it is seen that the decreasing trend of import offers has shown a significant slowdown - an indication that imports are approaching their cost levels. Moreover, the end-users have not shown much reaction to the price decreases. Thus, in the coming period, a close eye should be kept on consumer behaviour.