Demand for import flat steel increases in Indian market

Thursday, 01 November 2018 09:34:19 (GMT+3)   |   Kolkata
       

Flat steel product imports have continued to show signs of increasing in India during the past week, with the overall softening of ex-China offers, but higher-volume contracts were reported to have been concluded for ex-Japan and ex-South Korea flat steel at premiums by both large steel mills and commercial importers, traders said on Wednesday, October 31.

“The stability of the Indian rupee for most of the last fortnight has helped importers to plan their shipments. Also, the fact that ex-China offers have been steadily softening prompted Indian importers to conclude transactions,” a Mumbai-based trader said.

“However, in terms of volumes contracted, it was observed during the week that importers preferred to conclude contracts for shipments of ex-Japan and ex-South Korea flat steel products. Even at a premium,” the trader added.

HRC offers to India

According to market sources, ex-China HRC offers have fallen below the $600/mt mark to $595/mt CFR Mumbai, down by $5/mt during the past week. However, most of the import contracts for November deliveries were concluded for ex-Japan and ex-South Korea material.

The sources said that Indian importers have concluded transactions for 20,000 mt of ex-South Korea HRC for late November deliveries at premiums ranging at $15-20/mt on landed basis.

At the same time, it was reported that contracts were concluded for about 15,000 mt of ex-Japan HRC, also at a similar premium range, the sources added.

They said that, while commercial importers have been taking advantage of the steady Indian rupee and the sharp rise in prices of local HRC to conclude transactions, even some large local steel mills have concluded import transactions. Domestic steel mills were resorting to sourcing imported HRC possibly to use the idle excess capacity of their downstream rolling mills, increase downstream production to take advantage of higher earnings from local sales of downstream products.

CRC offers to India

According to market sources, ex-China CRC offers have moved down by $20/mt to $690/mt CFR Mumbai, but transaction volumes have remained lower compared to HRC as the market is expecting offers to soften further.

However, traders have reportedly concluded ex-China imports of aggregate volumes of around 7,000 mt during the past week.

Plate offers to India

Ex-China steel plate offers have remained unchanged during the past week at $640/mt CFR Mumbai with only limited contract volumes reported in the market during the past week. Most of the low-volume contracts have been concluded by actual users among state-run thermal power equipment manufacturers as they have been facing difficulties in sourcing boiler grade steel plate from local steel mills, the sources said.

 


Similar articles

Flat steel prices in local Taiwanese market - week 13, 2024

28 Mar | Flats and Slab

Stocks of main finished steel products in China down 0.6 percent in mid-March

25 Mar | Steel News

Flat steel prices in local Taiwanese market - week 12, 2024

21 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 11, 2024

14 Mar | Flats and Slab

Stocks of main finished steel products in China up 4.0 percent in early March

14 Mar | Steel News

Flat steel prices in local Taiwanese market - week 10, 2024

07 Mar | Flats and Slab

Stocks of main finished steel products in China up 12.8% in late Feb

04 Mar | Steel News

Japan’s steel exports up 5.3 percent in January

01 Mar | Steel News

Flat steel prices in local Taiwanese market - week 9, 2024

29 Feb | Flats and Slab

Stocks of main finished steel products in China up 26.8% in mid-Feb

27 Feb | Steel News