Indian imports of flat steel products have tapered off during the past week in reaction to hikes in ex-China offers and buyers, particularly end-users among automobile manufacturers, preferring to wait for offers to settle before making fresh bookings, resulting in almost negligible volumes being contracted, traders said on Wednesday, February 13.
The traders said that frequent reports in the market that the government is considering the imposition of a minimum import price (MIP) for flat steel and stainless steel products have also brought import transactions almost to a standstill
Importers generally stayed away from contracting import shipments so as avoid risks of MIP imposition while shipments were on the way and also since the market is unsure of the extent of the import restriction, the traders said.
They also pointed out that the market is expecting flat steel offers to soften with the Brexit deadline approaching and, with shipments to that region uncertain,n more volumes are expected to be diverted to other markets including India, and this would put renewed pressures on offer levels.
Ex-China HRC offers to India
Ex-China hot rolled coil (HRC ) offers have been raised by $15/mt during the past week to $510/mt CFR Mumbai, according to market sources.
However, no significant transactions have been reported by commercial traders, the sources said.
Ex-China CRC offers to India
According to market sources, ex-China cold rolled coil (CRC) offers have increased by $15/mt to $540/mt FOB, but no significant transactions have been reported in the market by either end-users or commercial traders.
Ex-China plate offers to India
Ex-China plates offer have been hiked by $10/mt to $580/mt CFR Mumbai according to market sources who added that no transactions have been reported in the market during the past week