Indian flat steel import activity has improved slightly during the past week with ex-China offers showing tentative signs of softening and local end-users tending to conclude import contracts for even relatively modest volumes, traders said on Wednesday, May 29.
“Ex-China offers for flat steel products are generally trending downwards even though ex-China CRC offers have remained stable during the past week. However, the significant emerging indication is that end-users are tending towards imported flat products for even modest volumes, particularly for ex-Japan materials,” a Mumbai-based trader said.
“Of course, large-volume contracts have not been reported in the market during the past week, but the number of average-volume contracts has increased mostly from local commercial traders,” the trader added.
Ex-China HRC offers
Ex-China hot rolled coil (HRC) offers have softened by $10/mt during the past week to $550/mt CFR Mumbai, according to market sources.
The sources said that reports available in the market suggest that commercial exporters have concluded transactions aggregating in the range of 8,000-9,000 mt for late June deliveries, with a part of the volume transacted by traders for re-export to neighboring markets.
According to a Mumbai-based trader, a western India-based large steel mill has concluded a deal for ex-Japan HRC at a premium ranging around 15 percent.
Ex-China CRC offers
Ex-China cold rolled coil (CRC) prices have remained stable during the past week at $560/mt CFR Mumbai, according to market sources.
The sources said that no significant volumes have been reported in the market by commercial traders during the week.
However, a number of end-users including a western India-based auto manufacturer concluded contracts for ex-Japan CRC, sources said, adding that, even though aggregate volumes contracted were not large, it was significant that users have been resorting to imports for even modest volumes, indicating that domestic prices are not being adjusted in line with international prices.
Ex-China plate offers
Ex-China plate offers have decreased by $10/mt week on week to $590/mt CFR Mumbai, according to market sources, who added that no significant transactions have been reported in the market during the past week.