Indian hot rolled coil (HRC) import trading has remained high on the back of steadily falling ex-Japan offers and local standalone re-rolling mills seizing the advantage of import sourcing over local bookings, SteelOrbis has learned from trade and industry circles.
They pointed out that early last week a local re-rolling mill concluded a trade for 40,000 mt of ex-Japan HRC $565-575/mt CFR in the west. Previously in early November, ex-Japan HRC was sold to India at $595/mt CFR.
Moreover, later in the week, another re-rolling mill in India was rumoured to have sold 25,000 mt of ex-Japan HRC at $555-560/mt CFR, but this has not been confirmed and some sources said that it is too low for Japan, even taking into account that mills in Japan have become more aggressive in the Indian market, trying to push volumes amid the slow demand conditions in Asia in general.
Though unconfirmed, trade circles have reported a trade for 15,000 mt of ex-South Korea HRC by a domestic mill for its captive rolling mill at the slightly higher price of $580/mt CFR.
According to a steel sector analyst with a Mumbai-based financial services firm, assuming a current local HRC trade price of INR 56,000/mt ($693/mt) ex-Mumbai, the landed price of imports enjoys a good advantage even after factoring in local levies including International Goods and Service Tax (IGST) and port logistic and transportation charges.
(Ex-Japan, ex-South Korea steel imports do not attract any import duty under Indian FTA agreements between these two countries.)
Trade circles pointed out that the increase in supplies from Japan and to some extent from South Korea has also been triggered by the ‘drying up’ of supplies from Russia following the appreciation of the US dollar against the rouble and problems faced by importers in banking channels to settle trades in Indian rupees for ex-Russian imports, as well as higher local HRC sales in Russia.
