Indian import offers for ex-China flat steel products have softened during the past week and activity has remained at a low key even as the focus of most import trading has shifted to ex-Japan flat products with a significant volume of contracts being concluded, traders said on Wednesday, April 17.
“Despite the slight lowering of offers for ex-China flat products, this has failed to trigger any significant buying interest, except for minor volumes contracted by local commercial traders to meet their reexport commitments,” a Mumbai-based trader said.
“But, in sharp contrast, there has been a significant rise in trading for ex-Japan material across the flat product segments,” the trader added.
Market sources attributed the rise in buying interest for ex-Japan flat products largely to demand for higher quality grades by commercial traders as well as actual users.
The sources said that ex-Japan flat steel product offers enjoyed an average premium in the range of 20-25 percent over the landed price of ex-China offers across product grades.
Ex-China hot rolled coil (HRC) offers have edged down by a marginal $3/mt during the past week to $570/mt CFR Mumbai, according to market sources.
However, higher volumes were contracted for ex-Japan imports by both actual users and commercial traders, the sources said.
According to the market sources, an aggregate volume of 20,000 mt of ex-Japan HRC has been contracted during the past week for May delivery.
In addition, a modest volume estimated in the range of 4,000-5,000 mt was contracted for ex-China HRC by Indian traders to meet their re-export commitments to buyers in Nepal, the sources said.
Ex-China cold rolled coil (CRC) offers have moved down $5/mt to $585/mt CFR Mumbai, according to market sources.
However, no significant volumes have been reported in the market, the sources said.
But, in contrast, most of the import activity has been focused on ex-Japan CRC and market sources estimate that an aggregate volume in the range of 10,000-15,000 mt has been transacted during the past week for May delivery.
The sources said, among actual users, southern India-based consumer durable manufacturers are reported to have accounted for the bulk of the import volumes concluded.
Ex-China plate offers to India
Ex-China offers for steel plates are down $10/mt during the past week to $626/mt CFR Mumbai, according to market sources.
The sources said that an estimated volume of 3,000 mt was contracted by a southern India-based pressure vessel manufacturer, while commercial importers have remained on the sidelines.