India: Landed costs of imported HRC from China, S. Korea higher than domestic prices after 12% duty

• Chinese HRC offers marginally higher than domestic prices
• Bulk HRC imports rise 15% m-o-m in Jun’25 but drop 19% y-o-y 

India’s imported hot-rolled coil (HRC) offers from China stood at around $500/t CFR India as on 1 July 2025, while those from south Korea stood at $520/t CFR India as on 17 June.

Furthermore, 12% safeguard will be added on imports of specific non-alloy and alloy steel flat products. The additional duty is added if the prices are below threshold price. Moreover, for HRC imports, this threshold is set at $675/t CIF.

Domestic price of HRC

BigMint’s benchmark assessment (bi-weekly) for HRCs (IS2062, Gr E250, 2.5-8 mm/CTL) declined by INR 700/t w-o-w to INR 50,000 ($585/t) against INR 50,700 ($593/t) as assessed on 4 July 2025.

The market is currently experiencing weak sentiment due to a combination of low demand and disruptions caused by the monsoon. Buyers are only purchasing to meet immediate needs and are pushing for lower prices, anticipating further price support. Elevated inventories and logistical challenges, particularly in construction and transport, are intensifying the downturn, sources informed.

Price gap analysis

The import price scenario for HRC into India from China and South Korea involves several cost components. The base prices are $500/t CFR for China and $520/t CFR for South Korea. For Chinese imports, a 7.5% Basic Customs Duty (BCD) and a 0.75% cess (10% of BCD) are applied, taking the effective cost to $542/t, while South Korean imports attract no BCD under FTA, so the cost remains $520/t. (table below for reference)

At a conversion rate of INR 85/USD, these values translate to INR 46,352/t for China and INR 44,509/t for South Korea. However, as both these figures are below the threshold import price of $675/t, a safeguard duty of 12% and an additional cess of 1.2% (10% of safeguard duty) are levied, amounting to an additional duty of $71/t for China and $69/t for South Korea (i.e., 13.2% of the respective import value).

This brings the post-duty cost to $576/t for China and $589/t for South Korea, or INR 49,153 and INR 50,259 respectively. Adding INR 2,000/t for port handling and miscellaneous charges, the final landed cost comes to INR 51,153/t for Chinese HRC and INR 52,259/t for Korean HRC.

When compared with the domestic HRC price of INR 50,700/t (ex-Mumbai, excluding GST), Chinese imports are marginally costlier, while Korean imports are notably more expensive.

Bulk HRC imports

India’s bulk hot-rolled coil (HRC) imports in June stood at 322,329 tonnes (t), a rise of 15% m-o-m from 279,250 t in May, according to BigMint data.

The major exporting countries include South Korea, China and Vietnam, shipping 172,373 t, 109,963 t and 27,000 t respectively.

Outlook

In the near term, the Indian HRC market is expected to remain subdued amid weak demand, high inventories, and monsoon-related disruptions. While import activity has picked up slightly, the narrow price gap between imported and domestic material is likely to limit further buying interest. Moreover, buyers are expected to adopt a cautious, need-based approach.