Indian Importers Resume HRC Bookings from Japan & South Korea - Reports
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Indian flat steel importers are again heard to have booked decent quantity of cargoes following decline global flat product prices. Moreover,imported HRC is slightly cheaper than domestic HRC compelling the manufacturers to book HRC imports form China,Japan and Korea.
Market participants mentioned that around 40,000 MT of HRC has been booked from Japan for Jul'17 deliveries in the range of USD 485-492/MT, CFR Mumbai. And around 20,000 MT HRC booked from South Korean steel maker -Hyundai Steel at USD 500/MT, CFR Mumbai.
Indian imports were INR 1000-1500/MT cheaper comapred to domestic prices.Below is the table mentioned for landed cost of imports.
| Landed cost of HRC imported from China,Japan,Korea to India | |||
| Particulars | China | Japan | Korea |
| CIF (USD/MT) | 460 | 485 | 490 |
| BCD in % | 12.50% | 0.00% | 0.00% |
| CIF+BCD (in USD ) | 518 | 485 | 490 |
| Safeguard duty | Not applicable as CIF prices is greater than refrence prices of USD 445 | ||
| Anti Dumping Duty (As per recent recommendation by DGAD for definitive duty for HRC is at USD 489) | Not applicable as CIF prices is greater than refrence prices of USD 489 | ||
| Port Handling (in USD) | $20 | 20 | 20 |
| Miscellaneous expenses | $5 | $5 | $5 |
| Total in USD | 543 | 510 | 515 |
| Total in INR | 34,805 | 32,690 | 33,000 |
| Countervailing Duty (12.5%) | 4,350 | 4,085 | 4,125 |
| Landed Cost in INR | 39,155 | 36,775 | 37,125 |
| Current Domestic HRC prices in India | |||
| Ex-Mumbai(inclusive of excise Duty 12.5%) | 38,500-39,000 | ||
| Premium/Discount | 700 | 1,745 | 1,375 |
1 USD= 64.1 INR
Prices on per tonne metric basis
Source-SteelMint Research
India-Domestic Flat Product Prices Remain Stable over Subdued Demand-Indian flat product prices remain stable over dull and tedious demand prevailing in the domestic market.Bearish sentiments along with cheaper imported cargoes has resultant to lower sales volumes and falling flat steel prices in domestic market.
Currently HRC (IS2062) 2.5mm-8mm are assessed in the range of INR 38,800-39,000/MT (ex-Mumbai), INR 39,500/MT (ex-Chennai) and INR 38,500-38,800/MT.Prices are inclusive of Excise duty of 12.5%.
Currently CRC (IS513) 0.9mm is hovering in the range of INR 44,500-45,000/MT (ex-Mumbai),INR 43,000-44,500/MT (ex-Delhi) and INR 45,000/MT(ex-Chennai).Prices are inclusive of Excise Duty of 12.5%
A trader based in Delhi quoted" Market is at standstill. If demand continues to remain sluggish in the domestic market then it is anticipated further decline in flat product prices by INR 500-1000/MT in coming days. GST is another reason that has lessened buying .
