In the local Indian flat steel market, SAIL production 2 mm HRC prices are at INR 28,500-29,000/mt ($615-626/mt) excluding duties - down INR 1,750/mt ($38/mt) compared to last month, whereas the Ispat production HRC base price level are at INR 29,000-29,500/mt ($626-637/mt) - down INR 1,500/mt ($32/mt) compared to last month. All the above prices are ex-works. Meanwhile, Chinese origin HRC offers to India for 3-12 mm material have decreased by $10/mt compared to last month and are now standing at $500-510/mt CFR India. Despite all adjustments, local production HRC ex-works prices (with all duties included) in the Indian domestic market are still higher by $80/mt compared to the Chinese numbers.
Local Indian flat steel producers hope that the ex-China offers will maintain their uptrend; thus, the Indian producers will not be obliged to make new price adjustments. According to market sources, increasing stock levels in the Chinese domestic markets may result in increased exports from China. Thus, it seems that the import pressure on India will likely be maintained for a while.
On the other hand, market players think in general that no significant decreases in the ex-China flat offers should be expected due to the pressure on profit margins caused by the lack of any great softening in raw material costs (such as coking coal and iron ore), with even some uptrends being observed in spot market prices for these raw materials.