Import prices in India for hot rolled coil (HRC) have softened during the past week, but trades have persisted at negligible levels as sentiments in the market have worsened amid a fresh ban on in-bound travelers to the country and lower import price benefits negated by the sharp fall in the value of the local currency.
According to traders, even end-of-February delivery contracts were not completed due to delays by freight forwarders and in unloading at Indian ports because of high-level screening. With consignments yet to land at importers’ stockyards, few importers have been willing to conclude fresh import bookings with the Indian currency still hovering at a 16-month low against the US dollar, negating the impact of lower import prices.
Market sources said that ex-South Korea HRC offers were at $510-515/mt CFR Mumbai, but no importer responded to the offers after the previous contracts at $500/mt CFR.
A western India-based re-rolled concluded a booking for ex-Japan HRC for April delivery at $495/mt CFR, although the volume, according to market sources, was modest.
Local re-rollers have slowed down bookings of HRC for conversion to cold rolled coils (CRC) both from local mills as well as imports after the Society of Indian Automobile Manufacturers’ (SIAM) issued an official caution that “Covid-19 may critically hamper vehicle production in all segments of passenger, commercial, three-wheelers and two wheelers. Manufacturers are exploring alternative sources of inputs but this will take time as new sourcing involves a lot of testing.’
Traders said that the caution is an indication of the further fall in restocking of raw materials by end-users and hence re-rollers have virtually stopped fresh bookings of imported HRC for captive conversion.
