Ex-China import offers for flat steel products to India have softened across the board during the past week but have failed to attract any significant trades, largely owing to sufficient stocks held by traders, with a demand slowdown expected to persist for the next few months, traders said on Wednesday, April 24.
“There is no appetite to restock imported flat steel products as end-users are putting strict inventory controls in place in view of the slowdown in finished goods sales and overall sluggish manufacturing growth,” a Mumbai-based trader said.
“The market is also getting apprehensive that the ongoing Indian elections might result in a hung verdict and uncertainties over the formation of the new government, and hence delays in any kind of government intervention in kick-starting growth,” the trader added.
Market sources said that the banking sector is also under a lot of stress and liquidity for working capital and credit line availabilities are very tight, forcing traders to be more cautious about concluding deals. The sources said that the sharp rise in buying interest for ex-Japan flat product imports seen earlier in the month also appear to be on the wane, with only modest volumes transacted during the past week.
Ex-China HRC offers to India
Ex-China hot rolled coil (HRC) import offers have softened by $10/mt week on week to $560/mt CFR Mumbai, according to market sources.
The sources said that, according to reports received, an aggregate volume of not more than 5,000-6,000 mt has been contracted by local traders in the past week.
It has been learnt that a small-volume of around 6,000 mt of ex-Japan HRC has been transacted during the past week, which the sources said was priced at a premium of around 15-20 percent over ex-China offers on CFR basis.
Ex-China CRC offers to India
Ex-China cold rolled coil (CRC) offers have declined by $10/mt during the past week to $575/mt CFR Mumbai, according to market sources.
The sources said that, while traders stayed away from making any bookings, south India-based consumer durable companies reportedly concluded contracts for an aggregate volume estimated at around 6,000 mt.
Ex-China plate offers to India
Ex-China steel plate offers have moved down by $10/mt to $615/mt during the past week, according to market sources.
The sources said that a nominal volume of around 4,000 mt was contracted by a southern India-based pressure vessel manufacturer, while traders have stayed out of this market segment.