Indian flat steel imports during the past week have continued to fall both in terms of volume and the number of contracts in the face of the steady rise in ex-China offers and the unwillingness of commercial traders to make bookings owing to end-of-fiscal-year considerations and political uncertainties, traders said on Wednesday, March 20.
“The combination of rising offers and political uncertainties over the approaching national elections have negated any import benefits from the rapidly appreciating Indian rupee,” a Mumbai-based trader said.
“Most commercial importers are also unwilling to lock up liquidity in fresh import contracts with the current fiscal year coming to an end, and also because banks are also squeezing working capital availability for importers at the close of the fiscal year,” the trader added.
Market sources said that only small volumes of ex-China flat product imports have been contracted by actual users led by southern India-based automobile manufacturing companies, and that low import activity is expected to continue as indicated by reports that total Indian steel imports during February 2019 were down 15 percent over the corresponding month of the previous year.
Ex-China hot rolled coil (HRC) offers have firmed up by $10/mt during the past week to $580/mt CFR Mumbai, according to market sources.
The sources said that no significant contracts have materialized during the past week with commercial traders largely not responding to offers.
Ex-China cold rolled coil (CRC) offers have edged up by $10/mt week on week to $615/mt CFR Mumbai, according to market sources.
The sources said that at least two southern India-based automobile manufacturer have concluded transactions for relatively small volumes, with the market estimating the aggregate volume in the range of 5,000-6,000 mt, while local commercial importers have been absent from this product segment.
Ex-China plate offers to India
According to market sources, ex-China plate offers have increased by $25/mt over the past week to $645/mt CFR Mumbai, but no significant transaction has been reported in the market in the given period.