India’s flat steel import activity has come to a near standstill with end-users keen to avoid risks of possible import duty changes in the forthcoming national budget next month and only a few small-volume deals have been reported for ex-China and ex-Japan hot rolled coil (HRC) by re-rolling mills, SteelOrbis has learned on Thursday, January 16.
According to traders, local flat steel producers have been lobbying the government for a hike in import duties to protect higher-cost local production. While budget provisions are under wraps, the government has already announced its policy bias towards “cutting down on non-essential imports” indicating a distinct possibility of higher tariff barriers.
Market sources said that local end-users are reluctant to conclude deals for ex-Japan HRC since the consolidation of offers above the $500/mt, and during the past week such offers have been maintained at previous levels of $530-540/mt CFR Nhava Seva port in western India.
The sources said that only a western India-based re-rolling mill catering to high-quality cold rolled coil (CRC) to southern Indian automobile companies has reported a deal for end-of-March delivery of ex-Japan HRC at $537/mt CFR for an estimated volume of 7,000 mt.
Most of the other limited small-volume ex-China HRC deals were concluded by merchant traders at $500-510/mt CFR Mumbai.