India’s flat steel import activity has taken a fresh hit during the past week due to transportation issues. Moreover, customers have been waiting for lower prices from South Korean and Japanese suppliers.
The Indian government in order to check the spread of the coronavirus has issued a travel ban on countries like China, Japan, South Korea, Italy and Iran and all visas issued to incoming travellers from China have been rescinded.
The government has also imposed a strict protocol at ports involving checking of personnel engaged in loading and unloading of cargo and interaction between port workers and shipping crew, leading to congestion at ports and an increase in the turnaround time of ships, traders said.
“Several completed import deals for even February contracts have not been completed owing to defaults in delivery commitments and a lot of the working capital of importers is locked up,” a Mumbai-based affected trader said. “Travel restrictions have aggravated negatives as often high-volume deals involve buyer-seller meeting post conclusion of contracts. This at a time when the appetite for imports is already low among local end-users,” he added.
Offers for ex-South Korea and ex-Japan hot rolled coil (HRC) have been mostly in line with the latest contract signed for South Korean origin at $500/mt CFR. At the same time, buyers are waiting for prices to decline to at least $490/mt CFR before making a further move.
