Some Indian reported that current offers of cold rolling grade HRC into India from Russian sellers are coming at USD 700 per tonne to USD 710 per tonne CFR levels for prompt shipments as against USD 670 per tonne levels last heard.
What is surprising is that the shipments offered, at new levels, is April, although almost all the mills were offering May shipments earlier. This reflects move by mills to service high priced orders at the earliest by creating space in production plans by postponing earlier lower priced orders.
| Import pricing | In USD |
| CFR Price | 700 |
| Custom Duty | 40 |
| Port Expenses | 10 |
| Landed in Indian port | 750 |
Without CVD and special duty, which is under MODVAT
Considering USD to INR exchange rate of 45.43, import price for HRC works out to INR 34,000 per tonne at Indian ports.
On the other hand, price levels being offered by Indian steel mills at Mumbai, after recent mid month hike, are at about INR 33,250 per tonne.
Thus in all likelihood, Indian steel makers would resort to a major hike in April.
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