India’s flat steel import activity has been at very low levels during the past week as both market intermediaries and end-users preferred to wait for clarity on any import duty changes likely in the forthcoming budget on February 1. Suppliers from South Korea and Japan were insisting at higher prices, which they announced a week ago, but there has been no response from customers, SteelOrbis was informed on Thursday, January 31.
Ex-South Korea hot rolled coil (HRC) offers have stayed at $550-560/mt CFR Mumbai. Moreover, some ex-Japan offers have been reported at up to $560-565/mt CFR. Ex-China HRC indicative prices have remained stable at $510-520/mt CFR Mumbai during the past week because of the Chinese New Year holiday. Buyers have not concluded any deals as the market expectations were that higher levels would not be sustained and that offers would soften once business activity picks up after the Chinese holidays and the market gets a definitive indication of the impact of the spread of the coronavirus across the steel markets in the Asian region.
Moreover, there were reports of a deal for ex-South Korea HRC at $525/mt CFR India about 10 days ago. “New offers were higher and buyers were not interested,” an Indian source said.
According to traders, there have been indications that the Indian government will clamp down on “non-essential imports” and offer greater import protection, tariff and non-tariff, to domestic steel mills, and hence importers did not want to risk getting caught with hikes in import duties or tariff barriers by concluding contracts so close to the national budget.
