February 12,2013

Flat Market: Domestic Increased HR/CR prices: Market Firm Delhi: Increased prices of Hot rolled coil (HRC) has increased the sales as stockiest look to buy in old price. Mostly prices traded at earlier level. Ludhiana: less buying with expectation of market to recover in the near term.

India
Place

HRC 2.5MM Prices (Rs/MT)

Price Change

Delhi Ludhiana Mumbai Hyderabad Tatanagar Ahmedabad Kanpur Prices Include ED/Taxes extra

40800 41100 41000 42300 37000 42000 41300

800+ 800+ 800+ 700+ 800+

Mumbai: Domestic mill untouched the HR Coil prices as import offer remain cheap. Quantity of imports in Mumbai have increased as December 2012 it was 30,500 tones to January it was 1,43,000 (approx) Hyderabad: Market remain stable, impact of high prices not seen in physical trade. Tatanagar: Weak demand from Tube manufacturers, Fabrication Industry and Equipments manufacturing units resulted in low sales Ahmedabad: Demand from Fabrication units can push demand forward from the current levels Comparison of Prices
Place

Price Comparison
Domestic Imported

Price Gap in Imported and Domestic HR is the reason for Mumbai 41000 39000 rise in imports, domestic HR 2.5-4MM in Mumbai is hoverAhmedabad 42000 41000 ing at around Rs 43,000 (including all) whereas imported material of same size is available at Rs 41,000-42,000 (Landed Cost, including ). Prices Including ED. Taxes extra (Domestic) Landed Cost (Imported), VAT @5% extra However in Ahmedabad imported material is being offered at Rs 43,000 (including all) compared to domestic mill prices of Rs 44,100 (including all)

Imports Scenario

Port Wise Imports of HR (Ch-7208) at major Indian Ports

160 140

QTY IN '000' MTS

Total Quantity of HR imported at major ports in Jan 2013 was nearly at around 367,300 metric tons Quantity of HR Imports at Mumbai port was nearly 142,900 metric tons HR Imports at Mundra port stands at 96,700 metric ton

120 100 80 60 40 20

0 Mumbai Mundra Kandla MAJOR PORTS Nov-12 Dec-12 Jan-13 Chennai Kolkata others

For Import Statistics, visit http://www.steelmint.com/hr_cr-index

February 12,2013

Higher Import hits Steel Industry

Increasing imports from countries like Japan and Korea have become curse for the Indian domestic mill due to competitive price offers from this countries and ongoing weak demand from domestic market. The Steel industry also facing problem of high cost was on account of out going iron ore shortage mainly in South region and delay in the approval of new projects. Growth consumption of Steel decelerated from 5% to nearly 3.9% in the period of 9 months compare to first 6 months in FY 2012-13.

Port Wise Imports of HR (Ch-7225) at major indian ports

80.00 70.00 60.00
QTY IN '000' MTS

50.00 40.00 30.00 20.00 10.00 CHENNAI JNPT KANDLA MAJOR PORTS Nov-12 Dec-12 Jan-13 MUMBAI MUNDRA

However, indications in the second half of the current fiscal suggested that imports might come down. The first six months of the current fiscal have seen a 40 per cent jump in steel imports. In the second half, it is likely to come down to 15 per cent, the Insdag Director-General said to The Hindu. Japan and Korea high trade with India is due to low import duty as pre the free trade agreement, i.e. basic duty is charged at 3.13% instead of 7.5% as applicable to others.

Break up of HR imports at Mumbai Ports from various countries

Break Up of HR (Ch-7208) Imports Country wise at Mumbai Port Jan-'13

SOUTH AFRICA 4%

COUNTRY SOUTH AFRICA JAPAN KOREA FRANCE BRAZIL Total

QUANTITY 5,155.01 55,457.56 28,425.17 17,124.69 29,987.92 136,150.36

BRAZIL 22%

FRANCE 12%

JAPAN 41%

KOREA 21%

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