Indian mills withdraw HRC offers
The recent imposition of export duties on steel by India has disrupted the overall dynamics of the country’s steel industry. Everyone from mills to traders was shocked, imploring the authorities to reconsider the move and asking for a grace period to process orders signed before May 21. The mills have temporarily withdrawn their HRC export offers, sources said.
“There are no offers from India this week; everyone is analyzing the impact of the decision,” a trade source said. “They are asking the government to at least allow them to process orders for which a letter of credit has been opened.”
Steel mills are also looking at other options to survive in export markets under export tariffs. The measures include adding small amounts of boron and exporting products under different HSN codes to evade tariffs, multiple sources said. “Some mills are also considering starting to export high value-added slabs,” a source said.
Even if mills add boron and change HSN codes, there are challenges in selling alloy-grade HRC to Europe.
The purpose of the levy is mainly to control domestic steel prices after costs in the construction and auto industries were severely affected. Prices have surged by almost 45-50%, compared with the government’s forecast at the planning stage of 5-10%.