India’s flat steel export trade activity has fallen to negligible levels as large steel mills have taken a pause to re-work export offers following the government cutting duty drawback rates on finished steel overseas shipments, while buyers in key Asian markets have remained cautious and uncertain as regards the impact of the spread of the coronavirus across the region, SteelOrbis was informed on Monday, February 3.
Market and official sources said that the Indian government had made changes to the Duty Drawback Scheme for finished steel exports and lowered the rates at which customs duty and other local levies on imported inputs that go into export production are reimbursed, and this will force large exporting steel mills to factor lower reimbursements into their export offers.
The sources said that the Indian government has issued an official advisory notice against travelling to China and several airlines have cancelled flights to the country and, under these circumstances, exporting mills have not been willing to force the conclusion of export contracts.
According to sources, the workable levels for Indian hot rolled coil (HRC) export prices have remained during the past week in the range of $495-505/mt FOB.
The sources said that a western India-based steel mill concluded a contract for a relatively small volume of 8,000 mt for end-of-March delivery at $499/mt FOB to Vietnam, against a deal concluded in the previous week averaging at $493/mt FOB.
The sources said that the same steel mill submitted offers at around $496/mt FOB for buyers in Italy, but received counter-bids at $485/mt on FOB basis, and no deal has been concluded with the exporter unwilling to offer discounts.
