Indian imports of flat steel products have remained steady during the past week even as ex-China offers were largely unchanged with both local end-users and traders in India continuing to make fresh bookings while domestic steel mills continued to battle rising inventories, traders said on Wednesday, January 30.
“It is significant that, despite overall low trading volumes in the domestic market, both local traders and end-users have continued to book modest import volumes,” a Mumbai-based trader said.
“There is a lot of talk in the market about unofficial discounts being offered on ex-China flat steel products even though base offers have been kept unchanged, but no importer is willing to confirm this,” the trader added.
Ex-China hot rolled coil (HRC) offers have edged up by a marginal $5/mt week on week to $495/mt CFR Mumbai, according to market sources.
The sources said that aggregate imports by end-users and traders are estimated by the market at around 4,000 mt during the past week for mid-February deliveries.
However, at least two traders have maintained that some of the sustained import volumes could be attributed to re-exports by Indian traders to markets in neighboring countries to take advantage of price arbitrage between ex-China HRC and HRC available locally.
Ex-China cold rolled coil (CRC) offers have remained unchanged during the past week at $525/mt CFR Mumbai, according to market sources.
The sources estimated that about 3,000 mt have been sold during the past week, largely by end-users, while Indian traders have refrained from concluding transactions.
Market reports suggested revival of ex-South Korea CRC imports during the past week with end-users reportedly contracting an estimated volume of 3,000 mt at premiums ranging $20-25/mt on CFR basis.
Ex-China plate offers to India
Ex-China plate offers have moved sideways at $570/mt CFR Mumbai over the past week but no significant volumes have been transacted, according to market sources.