South Korean HRC Exports to India fall 40% in Sept, M-o-M

South Korean hot rolled coil (HRC) exports to India dropped by over 41% in September 2019 to 85,084 tonnes (MT) from 144,273 MT in August.

The principal reason for this decline in Indian HRC imports from South Korea was low bookings of API grade HRC and on rumors of possible safeguard duty by Indian govt (which was later scrapped).

It may be noted that, Indian pipe mills booked American Petroleum Grade (API) grade coils, as several pipe tenders were awarded by Indian oil and gas companies, with ONGC and Gas Authority of India Limited (GAIL) floating the most number of tenders in the month of June/July.

South Korean HRC exports to Japan (the leading Korean HRC importer) too plummeted by around 15% from 120,104 MT in August 2019 to 102,269 MT in September.

India imports about 1.31 million tonnes (MnT) from South Korea every year, which is about 17% of total exports from that country.

Total South Korean HRC exports to India were at 7.9 MnT in financial year 2018-19 (FY19) and till September 2019, are at 6.7 MnT.

According to steel ministry data, South Korea, Indonesia and Japan made up 70% of India’s total steel imports in August. These three countries are able to sell low-priced steels to India as they are exempt from basic customs duties of 10% and 12.5% on long and flat products respectively because of the free trade agreements (FTAs).

HRC was the highest-imported steel product from South Korea and Japan in the April-July period of 2019. Japanese and South Korean car makers based in India, as well as white goods companies, are usually the major buyers of steel from these countries.