India’s flat steel import activity supported by stable ex-China offers and strong Indian currency

Wednesday, 10 July 2019 17:27:34 (GMT+3)   |   Kolkata
       

Indian flat steel import volumes have continued to be sustained during the past week with ex-China offers remaining stable and both traders and end-users being active in the market, although a section of the market maintains that the number of contracts has declined, traders said on Wednesday, July 10.

“Stability in ex-China flat steel offers combined with the Indian currency continuing to trend upwards against the US dollar have supported import activity. Traders have also been active due to the perception that the Indian government was going slow on the imposition of fresh tariff barriers despite hectic lobbying from domestic steel producers,” a Mumbai-based trader said.

“But at the same time there is caution as indicated by the slight fall in the number of trades and this has possibly been owing to the fact that end-users are booking smaller volumes due to falling sales of finished products,” the trader added.

Ex-China HRC offers to India

Ex-China hot rolled coil (HRC) offers have remained stable during the past week at $515/mt CFR Mumbai, according to market sources.

The sources said that the bulk of the volume bookings have been accounted for by traders, with the market estimating such bookings in the range of 7,000-9,000 mt during the past week

Reports available in the market suggest that a few end-users have preferred to book ex-South Korea HRC at a premium of 15-20 percent on landed price basis, with the aggregate volume contracted estimated in the range of 4,000-5,000 mt, the sources added.

Ex-China CRC offers to India

Ex-China cold rolled coil (CRC) prices have remained unchanged during the past week at $525/mt CFR Mumbai, according to market sources.

The sources said that, while traders have stayed away from making by fresh import bookings, the bulk of the contracts have been accounted for by end-users and large steel mills for further downstream conversion.

Reports available in the market indicate the total contracted import volume at around 7,000-8,000 mt during the past week, the sources said.

Ex-China plate offers to India

Ex-China plate offers have moved sideways during the past week at $555/mt CFR Mumbai, according to market sources.

 

Market sources state that, while no trader has reportedly been active in the import market, only one contract is reported to have been concluded for around 3,000 mt by a southern India-based thermal power plant boiler manufacturer.


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