India’s flat steel import activity has continued to remain at a very low level with negligible trades reported during the past week as the low demand situation has been worsened by users’ opposition to mandatory import registration and also by the steady weakening of the local currency, SteelOrbis has been informed.
Traders said that, with mandatory registration at Steel Import Monitoring System (SIMS) coming into effect from November 20, and major steel users and importers represented by organizations like the Engineering Export Promotion Council (EEPC) vehemently opposing registration ahead of importing 215 iron and steel products and also opposing payment of fees for such registration, end-users have largely stayed away from making fresh bookings.
At the same time, with demand continuing at low levels and the Indian currency weakening further and nearing the INR 72 to the US dollar mark, neither merchant importers nor actual users were keen to build up raw material inventories, the traders said.
Ex-China offers for hot rolled coils (HRC) from traders increased during the past week by $15/mt to $425-435/mt CFR Mumbai, which, coupled with the weaker rupee against the dollar, kept most end-users away from making any significant bookings.
However, the sources said that a western India-based re-rolling mill is reported to have made a large-volume booking at around $430/mt CFR Mumbai to meet long-term supply obligations for cold rolled coil (CRC) with Indian buyers.
“The import trade environment is becoming very adverse, coming as it does amidst already weak demand from end-users. No end-users nor merchant traders are willing to take on the additional burden of fees and compliance costs in SIMS registration,” a Mumbai-based trader said.