The hope of recovery in global export prices on year beginning post withdrawal of VAT rebate on Boron added steel exports, seems to have vanished even before the month of January has ended with import prices sliding down in Week 03

Boron added wire rod price were prevailing at about USD 420-425 per tonne CFR Mumbai in the year beginning. As per latest information, Chinese mills have started offering Chromium added wire rods to avail VAT rebate on alloyed steel and that too at prices lower by about USD 30 per tonne. Although clarity is still to emerge about the extent of Chromium addition, apparently the discounted prices are to take care of extra annealing cycles during drawing process required as Chromium addition makes the steel harder. On the other hand, the processing of HC wire rods for most applications would not be affected by Cr addition

Cr Added Wire rod - Landed at Mumbai port inclusive of 5% Import duty and USD 20 port expenses at USD:INR exchange rate of 61.61 – INR 27000 per tonne net of MODVAT as against domestic price of about INR 35000 per tonne plus taxes for drawing quality

In the previous weeks we had reported of signing of more than 100,000 tonnes of CR grade by Indian CR mills and about 30000 tonne of restricted chemistry pipe grade at USD 445-455 per tonne CFR levels from Russian mills when Chinese mills were sticking to USD 460 CFR levels. While the Russian mills stayed away in Week 03, Chinese mills are reported to have decreased their offers for SS400 HR to about USD 440 per tonne CFR India levels. Incidentally, we have learnt that Ukrainian small coils were last booked at USD 430 CFR India levels. Market players are expecting further cut of about USD 10 -20 per tonne from Russian and Ukrainian mills in next round of booking when fresh allocations are available

Pipe Grade HR - Landed at Mumbai port inclusive of 5% Import duty and USD 20 port expenses at USD:INR exchange rate of 61.61 – INR 30000 per tonne net of MODVAT

Cold Rolling Grade HR - Landed at Mumbai port inclusive of 5% Import duty and USD 20 port expenses at USD:INR exchange rate of 61.61 – INR 31000 per tonne net of MODVAT

Domestic HR prices are about INR 34500 to INR 35500 per tonne

Plate import prices also slid further in Week 03

Plate Mill Plate - Landed at Mumbai port inclusive of 5% Import duty and USD 20 port expenses at USD:INR exchange rate of 61.61 – INR 31500 per tonne net of MODVAT as against domestic price of about INR 36000-37000 per tonne plus taxes