Indian flat steel import activity has been good during the past week in reaction to domestic steel mills’ sharp hike of base prices. Ex-South Korea hot rolled coils (HRC) have been among the most popular in the market despite slight increase in offer prices, SteelOrbis learned on Thursday, December 12.
Offer prices for ex-South Korea HRC have risen marginally to $485-495/mt CFR Mumbai during the past week, compared to $480-490/mt CFR Mumbai a week before.
Sources said that a western India-based standalone re-roller concluded two deals for early February delivery for an aggregate volume of 25,000 mt of ex-South Korea HRC at an average of $487/mt CFR Mumbai. Traders have reportedly concluded deals for ex-South Korea HRC, for an aggregate volume of 10,000 mt at the average slightly higher price of $490/mt CFR Mumbai, the sources said, adding that merchant importers have been restocking amidst reports that Japanese and South Korean exporters are going to increase prices further. According to reports, major mills in both Japan and South Korea will have some regular maintenance works in the coming two months and so availability for the export market will be reduced. As a result, suppliers will increase offers for Asian buyers in late December and early January. Indian re-rollers will also be looking for imported stocks available from traders.
“The increases in import trades are restricted to ex-South Korea HRC. This is largely because most re-rollers are looking at higher quality specifications for conversions at their mills,” a Mumbai-based trader said.
Market sources said that ex-China HRC offers have risen by $8/mt during the past week to $458-463/mt CFR Mumbai, but only trades for very limited volumes have been reported in the market by Indian traders, largely to meet their re-export commitments to neighboring countries.
