Indian mills chanced their first rub with market by increasing HRC price by INR 500 to 1000 per tonne after nearly 2 Quarters. Coming at fag end of the year it was pale shadow of the seasonal hike in price and demand in Q2 and Q3.
Silhouetted against glimmer of revival in global HRC price by USD 10-25 per tonne over the past 1 month Indian mills had been eagerly waiting for price revision. Noticeably steam had been building up over the past month with depreciating Rupee and optimism generated by a government in overdrive to notch up higher economic growth by unshackling investment and new infrastructure projects.
Indian Rupee depreciated by 6% recently giving elbow room to domestic producers. Chinese steel market has demonstrated buoyancy during this period thereby improving the export offers. As the major threats from China and Black Sea receded it was time for domestic mills to fill the vacuum.
However poor demand continues to plague the market with most of the new projects still in the pipeline. Nonetheless optimism has been created.
In USDIN INR
CFR Price580
Custom Duty21
Port Expenses20
Landed at Mumbai Port621
MODVAT103
Total landed72439425
Net of MODVAT62133815
In per tonne
USD :INR - 54.490
Domestic price at INR 36000 per tonne ex Mumbai (excl ED & VAT) works out to parity of just INR 2200 per tonne which is not enticing for import booking given the time delay and other risks involved in import booking.
