Following a temporary lull in export trading of hot rolled coil (HRC) caused by the imposition of 15 percent export duty on HRC, Indian suppliers have gradually started to gain success in negotiations with certain customers, in particular, with those located in the GCC region. Specifically, aiming to mitigate the impact from the recent adjustments in the export trade policy, more and more Indian HRC exporters have begun to offer boron-added material, which is not subject to the export duty. In light of this, the first transactions have already been done, according to a few reliable sources. In particular, this week ex-India boron-added HRC has been booked to the UAE at $800/mt CFR and below, at least $40/mt down from the general level of ex-India HRC offers to the UAE at the end of May. The total volume is said to have been around 15,000-20,000 mt, but the information has not been confirmed by the time of publication. “Now all material from India is getting offered as boron-added. There is no other way to be competitive,” a regional flats distributor stated.
“It is the sole chance for Indian suppliers to avoid the export tax. Pipe and tube manufacturers may choose it without much trouble,” an official at a UAE-based mill stated. While a major Indian HRC exporter has insisted that the current offers even for alloy HRC from India are not below $820/mt CFR, a major UAE-based trader said it expects to see $790-795/mt CFR in the coming transactions. “The market here is very slow now, so it is quite a hard mission to secure an order. The price must be attractive,” one trader commented.