India’s flat steel import activity have revived somewhat during the past week, on the back of buying interest from local end-users for ex-Japan and ex-South Korea hot rolled coil (HRC) seen at higher prices, SteelOrbis was informed on Thursday, December 5.
Market sources said that ex-Japan and ex-South Korea HRC offers have been at $480-490/mt CFR Mumbai and a number of contracts have been concluded by some stand-alone rolling mills during the past week. Trading improved as Japanese steel mills are going to increase prices for Asian buyers in January and Indian customers have witnessed some attempts of local producers to hike prices. The sources said that a western India-based standalone CRC rolling mill with a long-term supply contract with a southern India-based automobile manufacturer concluded deals for two HRC cargoes for January and February shipment at $485-490/mt CFR though information regarding the aggregate volume was not available in the market.
“There are reports in the market that some Japanese mills plan a HRC price hike for Asian buyers in January which could be around $30-35/mt on CFR basis on the grounds that ex-Japan prices have bottomed out and prices can only go up in line with the bullish outlook on import trends in most Asian countries,” a manager at Uttam Galva Limited, a specialized CRC producer, said.
Market sources said that ex-China HRC offers from traders have increased by $10/mt during the past week to $450-455/mt CFR Mumbai. Bookings of only modest volumes by Indian traders have been reported in the market during the past week, mostly to meet re-export commitments to neighboring markets like Nepal, the sources added.