Indian flat steel import activity has remained at higher levels during the past week, helped by the softening trend of ex-China offers and the rush among end-users and market intermediaries to make fresh bookings ahead of anticipated tariff and non-tariff barriers reportedly under consideration by the Indian government, traders said on Wednesday, June 26.
“The steady softening of ex-China offers has come at the right time when local end-users and traders are keen to beat possible imminent tariff and non-tariff barriers that might come in the national budget next month,” a Mumbai-based trader said.
“Also, the difference between the landed price of imports and local flat steel product prices has increased over the past couple of weeks, with local steel mills maintaining their base prices unchanged while international finished steel prices have softened,” the trader added.
Ex-China hot rolled coil (HRC) prices have decreased by $10/mt during the past week to $530/mt CFR Mumbai, according to market sources.
Both traders and end-users have been active in concluding bookings, the sources said.
Based on reports available in the market, an aggregate volume ranging of 8,000-9,000 mt has been booked during the past week by end-users and traders, the sources added.
Ex-China cold rolled coil (CRC) prices have moved down by $15/mt during the past week to $535/mt CFR Mumbai, according to market sources.
The sources said that, while both end-users and traders have actively concluded bookings, reports in the market suggest that the aggregate volume booked was in the range of 10,000-12,000 mt.
At the same time, there were active bookings for ex-Japan CRC at premium of around 10-15 percent, with sources estimating total volumes traded at around 7,000 mt during the past week.
Ex-China plate offers to India
Ex-China plate offers have declined by $10/mt week on week to $565/mt CFR Mumbai, according to market sources.
The sources said that most of the bookings during the past week have been accounted for by a southern India-based thermal power plant pressure vessel manufacturer, although exact volume details of the contract are not readily available in the market.