India’s flat steel import activity has remained at high levels supported by the further softening of ex-China offers and end-users preferring to restock ahead of possible higher tariff barriers, traders said on Wednesday, June 3.
“India’s flat steel imports have remained at higher levels both in terms of the number of bookings and volumes. Both actual users and traders have been anticipating a hike in customs duties in the national budget later this week,” a Mumbai-based trader said.
“Importers have been supported in their bookings by the further softening of ex-China offers. But imports of ex-Japan and ex-South Korea flat products have been at low levels, possibly because buyers have been unwilling to bear the premiums involved,” the trader added.
Ex-China HRC offers
Ex-China hot rolled coil (HRC) offers have decreased by $15/mt week on week to $515/mt CFR Mumbai, according to market sources.
The sources said that the bulk of bookings, estimated by the market at round 7,000 mt, have been accounted for by traders, with part of the volume marked for re-export to neighboring countries.
At least two western India-based downstream units have concluded bookings totaling around 5,000 mt during the past week, according to the sources.
Ex-China CRC offers
Ex-China cold rolled coil (CRC) coils have softened $10/mt during the past week to $525/mt CFR Mumbai, according to market sources.
The sources said that, while traders kept largely away from concluding transactions, most of the bookings were accounted for by end-users, who have preferred imported ex-China material, as the price differential with local Indian CRC has increased with domestic steel mills deciding to maintain base prices unchanged.
The market estimated total CRC import bookings to range around 5,000-6,000 mt, the sources said.
Ex-China plate offers
Ex-China plate offers are down $10/mt to $555/mt CFR Mumbai, according to market sources, who added that neither traders nor actual users have concluded any significant bookings during the past week.