Indian flat steel imports during the past week have remained at negligible levels amid the steady hardening of ex-China offers and the unwillingness of Indian commercial importers to conclude significant transactions given the political uncertainties ahead of the Indian national elections, traders said on Wednesday, March 13.
“The steady increase in ex-China flat steel offers has triggered a lot of caution among commercial importers. The small volumes transacted during the past week have mostly been contracted by actual users, especially for ex-South Korea material at a premium of 15-20 percent above ex-China offers on CFR basis,” a Mumbai-based trader said.
“Commercial traders are also staying away from import trades largely because of the six-phase Indian national elections announced during the past week. They are not sure of being able to push sales amidst political uncertainties at least not until such time as a new government is decided at the polls,” the trader added.
Ex-China hot rolled coil (HRC) offers have been hiked by around $20/mt week on week to $570/mt CFR Mumbai, according to market sources.
No commercial importer has reported any transactions in the market during the past week, but reports indicate that small-volume transactions have been concluded by southern Indian-based end-users, the sources said.
However, though no confirmations have been available of such trades, the sources added that the bulk of the import contracts were concluded for ex-South Korea HRC by the end-users at a premium of 15-20 percent above ex-China offers on CFR basis.
Ex-China cold rolled coil (CRC) offers have increased by $20/mt during the past week at $605/mt CFR Mumbai, according to market sources.
While no import contracts have been concluded by commercial traders for ex-China material , the sources said that a few southern India-based auto companies are reported to have concluded relatively small volume contracts aggregating around 4,000-5,000 mt for ex-South Korean CRC at a premium over ex-China offers.
The auto manufacturing importers of CRC shifted to ex-South Korea offers largely because of quality preferences, the sources added.
Ex-China plate offers to India
Ex-China plates offer have firmed up by $25/mt to $645/mt CFR Mumbai, according to market sources.
The sources said that only one small-volume import contract is reported to have been concluded by a southern India-based thermal power plant equipment manufacturer, but no details on the exact volume traded could be ascertained in the market.