After Indian government imposed safeguard duty on HRC on 14 Sep’16, its cascading effect can be seen as increase in CRC exports.
India’s CRC exports which was 23,054 tonnes in Sep’15 surged by 71% to 39,615 tonnes in Jan’16 while as per customs data, in just eight days till 8 Feb’16, India exported about 22,307 tonnes of CRC.
Under Advance license scheme steel majors like POSCO-India are importing HRC from its parent company in Korea, processing it to CRC and exporting it in the international market.
An advance license is issued under Duty Exemption Scheme of India’s EXIM policy, which allows duty-free import of any input for goods production meant for export purpose.
Thus although MIP has been imposed on various steel products including HRC, imports under Advance license scheme have been exempted from MIP. Taking advantage of this scheme, POSCO-India will continue to import more HRC from its parent company, process it into CRC and will make its presence feel in the CRC export market.
Current export offers for CRC from India is assessed at USD 330-350/FoB India basis.
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