Indian hot-rolled coil (HRC) importers have recently secured significant deals from steelmakers in South Korea and Japan, according to market sources. These transactions come at a time when India’s steel import volumes are a growing concern for the domestic industry.
A major South Korean steel producer has concluded a deal of approximately 2,000 tonnes (t) of HRC at around $530/t CFR Chennai for March 2025 shipment. Moreover, a much bigger deal, involving around 30,000 t of HRC, has been heard concluded from Japan at around $485-490/t CFR Mumbai for April shipment, sources informed BigMint.
These deals underscore the continuing demand for imported HRC in the Indian market, even as the country grapples with a surge in overall steel imports. The influx of imports has become a major challenge for the Indian steel industry, with the country ending 2024 as a net importer. Total steel imports reached 9.22 million tonnes (mnt) in CY’24, significantly outpacing exports of 7.60 mnt.
South Korea emerged as the leading steel exporter to India, shipping 2.86 mnt in 2024, a 14% increase from the previous year. China followed with 2.76 mnt, an alarming trend of a 64% y-o-y jump in Chinese exports, rising from 1.69 mnt in 2023. This placed China almost on par with South Korea, holding a 30% share of total imports compared to Korea’s 31%.
Japan also significantly increased its steel exports to India, with a 97% surge to 1.81 mnt (from 0.92 mnt in 2023). In contrast, Vietnam saw a 34% decline in exports to India, with shipments falling to 0.68 mnt from 1.03 mnt the previous year.
Outlook:
The recent HRC deals from South Korea and Japan, combined with high overall import volumes, suggest continued reliance on imported steel. Market players believe that possible safeguard and/or anti-dumping measures might significantly impact import dynamics and pricing.
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