It is reported that the DEPB (Duty Entitlement Passbook) rate has been reduced by two percent in India. The DEPB Scheme is applied in order to neutralize the incidence of customs duty on the import content of exported products. The fact that it has now been reduced will most probably lead Indian mills to focus their sales on their own domestic market instead of exporting. Industry insiders expect the increase of availability in the local market to dampen any possibility of a domestic market price hike.
The current price level of imported hot rolled material in India appears to be $615-620/mt CFR for 1,250-1,500 mm widths and $635-640/mt CFR for 2,000 mm width, these prices being for SS400 grade material. However, exporters do not seem very eager to fit in such numbers as they do not find them workable. As a result, it is noted that no new import bookings are being made in India, and bids are only being collected in order to obtain ideas of prices - in view of the current situation where domestic availability is expected to rise.
Plate offers from Ukraine are at around $735-745/mt CFR base for prime grade material, while the new export offer levels from Indian producers are expected to be around $740-745/mt FOB, under the impact of the reduction of the export benefit.
For coated material, Indian producers are concerned about the strength of the Indian rupee and are considering an upward revision of their export prices in order to avoid any risks. For Z100 material, an Indian mill's HDG offer mainly to Europe is in the range of $1,020-1,070/mt CFR, prices varying according to thicknesses. For pre-painted material, again for Z100 coating, the price level to Europe including 90-day deferred payment is in the range of €860-890/mt ($1,223-1,265/mt) CFR.