India: Govt renews BIS licence of Vietnam’s Formosa Ha Tinh

• Formosa licence expired in December 2024
• India’s 9 mnt steel imports exceed exports of 8 mnt

In a significant recent development, the government has renewed the Bureau of Indian Standards (BIS) licence of Vietnam’s steel major Formosa Ha Tinh (FHS).

This renewal allows FHS to continue exporting hot-rolled coils (HRCs) to India. The renewed licence is valid until 4 December 2025 and covers specific HRC grades (IS 1079: 2017, HR0) with thicknesses ranging from 1.20mm to 6mm and widths from 900mm to 1560mm as per the official website of BIS.

This renewal follows a previous licence extension granted in May 2024, which was valid until December 2024.

India steel imports:

India’s steel imports reached 9.22 million tonnes (mnt) in 2024, exceeding exports of 7.60 mnt, making India a net steel importer. Finished flats accounted for 94% of steel imports, rising 27% y-o-y to 8.65 mnt against 6.80 mnt in 2023.

South Korea emerged as the largest steel exporter to India, exporting 2.86 mnt, up by 14% y-o-y from the previous year. China followed closely, with imports increasing 64% y-o-y to 2.76 mnt, narrowing the gap with South Korea’s market share.

Notably, Japan’s steel exports to India grew by 97% y-o-y to 1.81 mnt, while Vietnam’s exports declined 34% to 0.68 mnt during the same period.

Outlook:

India’s steel import landscape is evolving, with a notable increase in imports. The renewal of FHS BIS licence brings yet another competitor into the Indian steel market, particularly for HRC. This may further increase pressure on domestic Indian steel producers. The domestic industry will need to focus on improving competitiveness, enhancing efficiency to navigate the changing market dynamics.