Indian flat steel import activity continued to remain at a low ebb during the past week with most of the limited volume deals restricted to ex-China hot rolled coil (HRC) and most end users reluctant to pay premium for ex-Japan or ex-South Korea material, SteelOrbis was informed on Thursday.
Sources said that ex-China HRC offers were at about $460-470/mt CFR in the previous week. In contrast ex-S Korea HRC offers were up marginally to $490-495/mt CFR Mumbai.
Sources said that most of western India based standalone re-rollers were unwilling to pay premium on South Korean HRC, as they would be unable to pass on the higher costs to their cold rolled coil (CRC) end users as demand in latter continued to be low and users were keeping minimum inventories.
“Much of the lack of interest in higher priced HRC was largely owing to end-of year considerations. At the same time, local buyers were anticipating ex-Japan and ex- South Korean HRC prices to soften as reports suggest that Japanese steel mills attempt to keep pushing up export offers was not proving too successful and might not be able to sustain the current higher levels,” a Mumbai based trader said.
Sources said that a western India based re-roller concluded a booking of 10,000 ton for ex-China HRC for end February delivery at $470/mt CFR Mumbai.
