Indian HRC Import Bookings Soften Amid Currency Depreciation

Indian importers have turned silent for HRC bookings amid currency depreciation and with apprehensions of expected increase in import duty by Indian govt. Indian Rupee is currently trading at all time low of 74.38 against USD unlike 72.1 a month ago. Also as per reports, Indian govt. is planning to raise import duty on steel from 5-12.5% to 15%. Thus, these two factors have turned Indian steel importers silent for bookings.

As per sources report to SteelMint, HRC offers from a major Japanese mill is assessed around USD 620-630/MT, CFR however no deals were reported. And Japanese mills are planning to hike their offers by around USD 10-15/MT on expected increase in demand from overseas buyers in coming months.

Chinese HRC export offers inch down post Golden week holidays-This week Chinese HRC export offers inched down by USD 5/MT post Golden Week holidays. Weakening demand amid week long holidays along with dull market sentiments results to lower HRC export offers from China.

Currently HRC export offers from China was assessed around USD 560-570/MT FoB basis. Before holidays mills were offering at USD 565-570/MT FoB basis.

However after holidays, Chinese mills have increased prices in domestic market by RMB 20-30/MT and are offering at RMB 4,250-4,270/MT (ex-works) in Eastern China and RMB 4,150-4,160 /MT in (Northern China).

CIS origin HRC export offers slip further amid oversupply-CIS-origin HRC export offers is falling persistently owing to oversupply as buyers are expecting further downside in prices.
Currently CIS origin HRC export offers heard around USD 515-540/MT, FoB Black Sea. Last week the offers stood at USD 525-540/MT FoB Black Sea.

However major mills were offering on higher side which is around USD 530-545/MT FoB Black Sea.

Imported HRC offers to Bangladesh decline further this week- Market sources shared that imported HRC offer to Bangladesh decline by USD 5-10/MT for November in line with falling HRC export offers from China.

Meanwhile Russian based MMK steel is offering HRC to Bangladesh at around USD 590/MT CFR for November shipments.Trade sources mentioned that around 25,000 MT of HRC has been booked from Russia for Nov shipments.

Prior to this,as per last assessment imported offers of HRC to Bangladesh from Russia was hovering around USD 600-610/MT CFR basis.

Absence of HRC export offers from India - Indian mills have recently increased flat steel prices by INR 1000-1500/MT in domestic market over anticipation of improved demand from auto sector.

Thus steel manufacturers are focusing in domestic market ahead of festive season and are not offering much exports to global nations.

Currently no active offers for HRC exports from India.Last offers was heard at USD 565-570/MT CFR Vietnam.

Global Flat Steel Export Offers - Week 41,2018

Source-SteelMint Research