Flat steel import activity into India have improved slightly during the past week despite higher ex-China offers, as traders and end-users have increased inward shipment volumes in anticipation of increased import protection shortly, traders said on Wednesday, June 19.
Market sources have said that there is a lot of speculation that the government will give in to sustained pressures from domestic steel producers for higher protection like imposition of safeguard duty, a hike in customs duty in the national budget next month, and possible non-tariff barriers too.
These apprehensions have prompted both end-users and traders to make fresh bookings with reports suggesting strong interest in concluding contracts for ex-Japan and ex-South Korea flat products even at marginal premiums in the range of 10-15 percent.
Ex-China hot rolled coil (HRC) prices have firmed up by $10/mt week on week to $540/mt CFR Mumbai, according to market sources.
The sources said that both end-users and traders have increased booking volumes ahead of possible higher tariff and non-tariff barriers, with the market estimating an aggregate volume contracted for ex-China HRC in the range of 9,000-10,000 mt during the past week.
Reports available in the market suggest that traders have also showed interest in booking ex-Japan and ex-South Korea HRC with the aggregate volume pegged in the range of 5,000-7,000 mt, the sources added.
Ex-China cold rolled coil (CRC) prices have increased by $10/mt over the past week to $550/mt CFR Mumbai, according to market sources.
According to the sources, the aggregate volume contracted during the past week for ex-China material is estimated to be 6,000-8,000 mt, with bulk of the bookings being accounted for by end-users.
Southern India-based consumer durable and automobile manufacturers have, however, been focused on concluding bookings for ex-South Korea CRC at a premium, with market estimating such bookings at 7,000 mt.
Ex-China plate offers to India
Ex-China offers for steel plate have increased marginally by $5/mt during the past week at $575/mt CFR Mumbai, according to market sources, who added that no significant import contracts have been reported in the market during the past week.
