Indian flat steel import activity has remained at negligible levels with ex-China offers remaining stable during the past week, traders said on Wednesday, January 16.
“A combination of a slowdown in industrial activity, high inventories at local steel mills and market intermediaries, and the renewed weakening of the local currency against the US dollar, has forced a further fall in import transactions to negligible levels,” a Mumbai-based trader said.
“Local commercial traders have been reluctant to make fresh contracts at unchanged offer prices, anticipating a weakening of finished steel prices. Anyway, most end-users and traders have become risk-averse as regards increasing imported stocks as there is already too much material floating in the Indian market,” the trader added.
Ex-China hot rolled coil (HRC) offers have been maintained at $515/mt CFR Mumbai during the past week, according to market sources.
The market sources said that no significant import transactions have been reported in the market. However, they added that there have been reports of small-volume import contracts for ex-South Korea HRC being concluded by actual users during the week for end-February delivery, with the market estimating the aggregate volume to be in region of 2,000 mt. The contracts were reported at a premium of $10-15/mt at $525-530/mt CFR Mumbai.
Ex-China offers for cold rolled coil (CRC) are unchanged at $545/mt CFR Mumbai, according to market sources, but no significant transactions have been concluded during the past week by either local steel mills or commercial traders.
Ex-China plate offers to India
Ex-China offers of steel plates have been maintained at $590/mt CFR Mumbai, but no import transactions have been reported in the market during the past week, according to market sources.