Indian imports of flat steel have continued during the past week helped by stable ex-China offers, fresh bookings by end-users and backed by the strong Indian currency, traders said on Wednesday, July 17.
“With no prospects of any immediate hike in customs duties by the government, end-users have remained active in concluding fresh deals even for relatively low volumes. While merchant traders have been cautious in concluding transactions given the slowdown in domestic sales, much of the import trade has been accounted for by end-user industries,” a Mumbai-based trader said.
“With the Indian currency consolidating against the US dollar, moving to levels of around INR 68.70 to the dollar and forecast to strengthen and with local steel mills not adjusting base prices for flat steel products, import activity even for comparatively low average transaction volumes is expected to continue among user segments,” the trader added.
Ex-China hot rolled coil (HRC) offers have remained stable during the past week at $515/mt CFR Mumbai, according to market sources.
The sources said that both traders and end-users have been active in concluding bookings for August deliveries with the market estimating aggregate volumes in the range of 6,000-7,000 mt. At the same time, at least two western Indian downstream steel producers are reported to have booked an aggregate HRC volume estimated at around 7,000 mt for August deliveries.
Ex-China cold rolled coil (CRC) offers have moved sideways during the past week at $525/mt CFR Mumbai, according to market sources.
The sources said that traders have remained inactive in this product segment as materials have been moving slowly in the domestic market, but end-users led by at least two southern India-based consumer durable manufacturers and a north India-based automobile company accounted for the bulk of the transactions concluded during the past week.
According to market sources, the estimated volume contracted during the week was in the range of 8,000-9,000 mt.
Ex-China plate offers to India
Ex-China plate offers have remained unchanged during the past week at $555/mt CFR Mumbai, according to market sources.
The sources said that a southern India-based pressure vessel manufacturer accounted for the bulk of a transaction that was concluded, but the contracted volume could not be confirmed as the deal was negotiated directly between the importing manufacturer and a Chinese steel mill.