India’s import flat steel trading activity has ground to a halt with cases of previous deals being cancelled as importers are pulling out of the market to avoid deliveries getting stuck at sea or at ports, SteelOrbis has informed.
According to traders, despite the sharp fall in ex-China offers for hot rolled coil (HRC), neither end-users nor re-rollers have been interested in concluding deals as the risks are too high of shipments getting stuck and importers having to incur losses after the Indian government declared a national lockdown.
Ex-China HRC prices have been quoted in the range of $475-480/mt CFR Mumbai compared to levels of $490-495/mt in the previous week.
No price offers have been received for ex-South Korea or ex-Japan HRC during the past week, with sources pointing out that neither suppliers nor buyers have any clue how delivery commitments can be maintained in view of the rising risks facing shipping and port operations.
“Private steel mills are cutting production or closing down operations altogether. This can cause risk to domestic supply. But even imports are no more an option for end-users as no one is sure of delivery commitments,” a steel producers in India said.