- Safeguard duty raises HRC import costs
- Domestic HRC cheaper by INR 3,200/t
BigMint has calculated the impact of the 12% safeguard duty on HRC, which is the largest category that gets imported into India from both FTA and non-FTA countries. The CFR price of HRCs from non-FTA countries is taken at $495/t on 3 February with 7.5% basic customs duty plus 0.75% of cess at 10% of the BCD, which takes the price to $536/t. With the Indian rupee (INR) conversion rate taken at 91 to the dollar, it works out to INR 48,551/t.
The 12% safeguard duty, along with a cess of 1.2% (10% of the safeguard duty), works out to $71/t. Therefore, post-safeguard duty, the cost is estimated at INR 54,982/t ($607/t). With the addition of INR 2,000/t as port handling charges, the total landed cost of HRC imports is calculated at INR 56,982/t.
On the other hand, domestic benchmarked trade-level HRC prices (IS2062, Gr-E250 Br., 2.5-8mm/CTL), ex-Mumbai, were around INR 53,800/t ($/t) on 3 February, making these cheaper by around INR 3,200/t ($35/t).
In a similar manner, the final landed cost of HRC imports from FTA countries works out to INR 55,800/t ($615/t), slightly lower than those of imports from non-FTA countries.
Domestic market update
BigMint’s benchmark assessment (bi-weekly) for HRC (IS2062, Gr E250, 2.5-8 mm/CTL) increased by INR 800/t ($9/t) w-o-w to INR 53,800/t ($597/t) on 3 February against INR 53,000 ($588/t) on 27 January. These prices are ex-Mumbai for the distributor-to-dealer segment and exclude 18% GST.
Leading Indian steelmakers have increased list prices of HRC for early February sales. List prices of HRC (2.5-8 mm, IS2062, Gr E250 Br) ranged within INR 53,450-54,250/t ($593-601/t) ex-Mumbai.
Notably, after the release of January sales prices, list prices were revised again twice or thrice in the month. As a result, in early February, the cumulative m-o-m increase in list prices stood at INR 2,500-3,250/t ($28-36/t).
M-o-m, trade-level HRC prices rose by INR 4,900/t ($54/t) to INR 52,000/t ($576/t) in January compared with INR 47,100/t ($522/t) in December.
Bulk HRC imports
India’s bulk HRC imports in January 2026 totalled 299,673 t, a decline of 26% from 4,06,255 t in January 2025, as per BigMint’s vessel line-up data. Moreover, imports decreased by 21% compared to 380,944 t recorded in December.
The m-o-m decline in HRC imports reflects the final implementation of the three-year staggered safeguard duty on 30 December 2025, which has sustained the downward trend in import volumes since the duty’s provisional introduction in April last year.
In January, South Korea, China, and Japan were the leading bulk HRC suppliers to India, with shipments of 100,785 t, 97,098 t, and 54,496 t, respectively. Imports from South Korea declined by 30% y-o-y, while Japanese volumes fell by 39%. In contrast, shipments from China surged by 92% over the same period.
Outlook
Indian HRC prices are expected to sustain a mild upward trend, as measures such as the safeguard duty are likely to keep imports expensive, supporting domestic prices and strengthening the local market. However, potential supply-demand imbalances could lead to price volatility.
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