- Advance Authorisation Scheme leads to higher imports
- Earlier EU bookings boost July HRC export volumes
India’s bulk hot-rolled coil (HRC) imports rose 37% m-o-m to 339,040 tonnes (t) in July from 247,754 t in June, according to BigMint’s vessel line-up data. However, arrivals were 30% lower y-o-y than 484,879 t recorded in July 2025. The sequential increase was primarily driven by export-oriented procurement under the Advance Authorisation Scheme, while imports for the domestic spot market remained limited.
Export-linked procurement supports imports
South Korea, China and Indonesia remained the three largest bulk HRC suppliers to India in July, shipping 118,174 t, 99,712 t and 84,361 t, respectively.
Imports from South Korea declined 10% m-o-m, reflecting lower shipments under existing supply arrangements. In contrast, arrivals from China increased 63% over June, while Indonesia emerged as a key supplier during the month.
Market participants indicated that a significant share of HRC imported from South Korea is supplied under long-term contracts between Indian companies and their parent entities.
The Advance Authorisation Scheme continued to support import volumes by allowing manufacturer-exporters and merchant-exporters to import raw materials duty-free for incorporation into export products, subject to prescribed export obligations. The scheme also permits imports without mandatory BIS certification, reducing working capital requirements and enabling manufacturers to source specialised grades for export production.
Industry sources stated that a substantial portion of imported HRC is consumed by pipe and tube manufacturers producing line pipes and API-grade pipes for overseas oil and gas projects, rather than being traded in the domestic market. One market participant estimated that a single exporter imports around 10,000 t of HRC every month to manufacture API pipes for re-export.
BigMint understands that HRC imported from Indonesia is largely intended for captive consumption and is not meant for trading in the domestic market.
Earlier bookings lift export shipments
India’s bulk HRC exports increased 56.64% m-o-m to 369,304 t in July from 235,773 t in June, primarily reflecting the execution of orders booked in previous months.
A major Indian steel exporter said, “The October-December EU quota has been fully booked. As a result, EU buying activity has stalled, with participants awaiting the next booking cycle, which is expected to begin in October for the subsequent quota period.”
Export shipments were mainly supported by deliveries to the European Union, where buyers accelerated purchases ahead of the exhaustion of the October-December (Q4CY’26) safeguard quota. Improved clarity over the revised country-wise quota allocation also encouraged buying activity before the quota was fully utilised.
Meanwhile, exports to the Middle East and Southeast Asia remained subdued amid geopolitical tensions, weak downstream demand, elevated inventories and unworkable bid levels, particularly in Vietnam.
Outlook
HRC imports are expected to remain supported by the Advance Authorisation Scheme and long-term contracts, while spot market imports may stay limited. Export shipments are likely to moderate after July as earlier EU bookings have been executed, with fresh activity dependent on the next EU quota cycle and overseas demand recovery.
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