After Indian government announced 20% provisional safeguard duty on HRC in September, Indian steel manufacturers and traders are exploring options to export steel from India.
For instance, POSCO-India is now focusing more CRC exports. In order to offset the safeguard duty effect, POSCO-India is importing HRC from its parent cmpany in Korea, processing it to CRC and exporting this CRC in overseas market under advance license scheme.
An advance license is issued under Duty Exemption Scheme of India’s EXIM policy, which allows duty-free import of any input for production of goods meant for export purpose.
Currently POSCO-India is offering CRC at USD 330-340/MT, FOB India basis. Indian CRC is usually exported to Middle East and European countries. As per trade sources, POSCO-India might lower down their prices in case of bulk buying.
A brake in Indian CRC Imports
Imported CRC offers to India have been stable with minor fluctuations since last one month. Current offers from China are assessed in the range of USD 310-320/MT whereas offers from Korea/Japan are at USD 380/MT, CNF India basis.
However Indian importers have stalled their overseas purchases in anticipation of Minimum Import Price (MIP). Indian government is likely to announce MIP under which steel cannot be imported in to India below the decided floor price.
Also in order to deal with the influx of cheaper steel imports, Indian government has made BIS license compulsory for 15 products which includes CRC also. Under BIS scheme, the production and sale of steel products that does not meet Bureau of Indian Standard (BIS) approval has been banned.
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