Import hot rolled coil (HRC) prices in India have dropped over the past week as South Korean sellers decided to provide discounts to attract customers. Interest in ex-China HRC has been limited despite low offer prices, SteelOrbis has been informed.
Market sources said that South Korea-based Hyundai Steel has concluded a HRC deal with a western India-based re-roller at $545/mt CFR Nhava Seva port in western India for April delivery. Moreover, there have been reports that some fresh offers are already at $530/mt CFR in India from South Korea. As SteelOrbis reported earlier, the previous price level for ex-South Korea HRC was at $560/mt CFR.
HRC offers have been under pressure from low demand for imported material over the past weeks in India and from low-priced offers from China. According to sources, ex-China HRC offers ranged at around $490-495/mt CFR, but no deals have been reported in the market as buyers have been anxious to avoid any fresh government import barriers. According to traders, there have been reports that the Indian government in response to complaints from local steel mills will undertake investigations into allegations of ex-China HRC coming into the country routed through third countries with which India has free trade agreements. Though the traders said that it is too early to forecast any kind of clampdown by the government on such inward shipments, the reports have impacted sentiments and trading volumes of ex-China HRC.
“Import interest is limited to only higher quality HRC. Traders are largely absent from the import market. The government has not made any changes to the import duty regime, but it had put on record that it is ‘monitoring’ lower grade steel imports and this is an indication that non-tariff barriers could be strengthened,” a Mumbai-based trader said.