INDIA August 07 2014 11:45 AM
MUMBAI (Scrap Register): Sales volumes for hot rolled coil steel have slowed down in India’s northern and central states according to MEPS International.
Stockists operating in these regions have begun to offer additional discounts to facilitate deals. Offers from Asian suppliers of commercial grade coil for August shipment stood at $535-550 per tonne CFR (excluding 7.5 percent import duty and port handling expenses).
Quotations from Asian hot rolled plate suppliers for August shipment stood at US$540/550 per tonne CFR (excluding import duty).
During recent negotiations, customers and suppliers agreed a rollover of June’s cold rolled coil figures. Quotations from Asian steel suppliers, for August delivery, stood at US$600/610 per tonne CFR (excluding 7.5 percent import duty and port handling expenses) – down 2.4 percent, month-on-month.
Hot dipped galvanised coil producers have kept selling values at the level established in June. Primary steelmakers have expressed concerns over the government’s decision to impose an import duty of 2.5 percent on metallurgical coking coil. Previously, there was no duty on this key steelmaking raw material.
Procurement activity of wire rod has, on average, fallen by 30 percent. However, transaction values have been support by high billet and ferrous scrap prices. Rashtriya Ispat Nigam Limited (RINL) has elected to increase its July basis selling figure to Rs42,230 per tonne (excluding all taxes). The adjustment has been blamed on the higher cost of domestic iron ore and a recent hike in railway freight charges.
Buying sentiment is unchanged for medium sections and beams. Monsoon rains have restricted construction activity in the central, northern and southern states.
Procurement activity for reinforcing bar has been restricted by the onset of the monsoon season and high inventory levels. Steel production in Andhra Pradesh and Telangana has been unsettled by high electricity tariffs and power shortages.
The business environment has begun to soften for merchant bar. Meanwhile, the government has maintained the import duty on structural steel products at 5.0 percent.