Indian imports of ex-China flat steel have remained at negligible levels during the past week, in reaction to the slight firming up of offers and reports of impending import protection measures to be imposed by the Indian government, traders said on Wednesday, February 20.
However, the traders pointed out that some commercial importers have been active in concluding transactions for ex-South Korea hot rolled coil (HRC), possibly to meet their short-term contracts with local Indian end-users.
“With persistent market chatter of the government imposing a minimum import price (MIP) and with local steel mills’ lobbying aggressively for hikes in import duties, most traders have been extremely cautious about concluding import transactions. Only those traders already with healthy order books are seen to be active in the import market,” a Mumbai-based trader said.
“It is almost inevitable that the government will impose import restrictions. The only question is in what form and when,” the trader added.
Ex-China HRC offers to India
Ex-China hot rolled coil (HRC) offers have increased by $10/mt week on week to $520/mt CFR Mumbai, according to market sources.
Commercial importers have largely stayed away from concluding fresh transactions to avoid getting caught by higher prices and by possible fiscal import protection measures, the sources added.
However, some commercial importers have been seen to be bucking the overall trend and have been active in booking ex-South Korea material at premiums in the range of 15-20 percent, with the market estimating the total shipment volumes to be in the range of 3,000-4,000 mt.
Ex-China CRC offers to India
Ex-China cold rolled coil (CRC) offers have been hiked by $10/mt mt week on week during the past week to $550/mt CFR Mumbai, according to market sources.
However, in reaction to the higher prices, no significant import transactions have been reported by commercial traders, the sources added.
Ex-China plate offers to India
Ex-China offers for plates have been increased by $10/mt week on week to $590/mt CFR Mumbai, according to market sources, who also added that no trader has reported any transactions during the past week.