India is set to overtake Japan this year as the largest importer of South Korean Hot Rolled Coils (HRC) on active imports from POSCO (India) and stable demand for API grade HR coil.
South Korean HRC exports falling under chapter 7208 to India is reported at 1.3 MnT during Jan-Nov 2019 whereas exports to Japan reported at 1.2 MnT, according to data maintained by SteelMint. HRC imports from Korea during similar period in preceding year was reported at 1.18 MnT to India and 1.27 MnT to Japan. Total HRC exports from South Korea in 2018 was reported at 7.9 MnT.
Experts attribute this increase in imports to active imports made by POSCO India for their processing center located in Maharashtra. According to SteelMint’s data, POSCO India imports accounts for over 40% (~580,000 MT) of total imports from South Korea during Jan-Nov 2019.
Steelmint also learnt from market sources that POSCO has an MoU with Essar steel for supply of 1 MnT HRC. However in 2019 POSCO sourced ~600,000 MT against ~900,000 MT in 2018.
Another factor supporting imports from South Korea is, Indian government’s ambitious project of creating a gas grid ( (~3,300 km pipeline) connecting north to the eastern part of India under Pradhan Mantri Ganga Urja Yojna. Several tenders have been issued and awarded in the year 2019 by state owned units.
It may be noted that HRC imports from South Korea does not attract an import duty under Free Trade Agreement (FTA) signed between the two countries.
India’s total HRC import during first 11 months of 2019 (Jan-Nov) is recorded at 8.13 MnT.
Leave a Reply