India Flat Steel Imports in CY'17 Stable Amid Imposed Protectionist Measures

Indian flat steel imports remained steady in CY17 at 6.08 MnT in CY17, inched down marginally by 1% against 6.14 MnT in CY16. Imposition of preventive measures by Indian government has kept the import volumes largely stable.

Imports from Japan & Korea increases, decline from China in CY17- India has imported 1.48 MnT of flat steel from China in CY17, plunged by 18% against 1.80 MnT in CY16.
However imports from South Korea rose by 13% to 2.29 MnT in CY17 against previous year.Meanwhile imports from Japan also inched up by 5% to 1.18 MnT in CY17 against 1.12 MnT in CY16. Other major sources of Indian flat steel imports in CY17 were- Russia, Vietnam, Taiwan etc.

Imports of Galvanized steel and Electrical Steel moved up in CY17-India imported 1.37 MnT of Galvanized steel up by 11% in CY17 against 1.23 MnT in CY16.Also imports of electrical steel moved up by 27% to 1.85 MnT in CY17.

However imports of HRC remained largely stable at 2.41 MnT and CRC imports reduced to half to 0.41 MnT in CY17.

Quantity in MnT
Source-SteelMint Stats

Why Indian Flat Steel imports remained stable?

1.Imposition of Anti Dumping Duty on cheaper imports - The Directorate General of Anti Dumping (DGAD), which comes under ministry of commerce, has imposed definitive anti-dumping duty on Hot Rolled Coils (HRC) and MS Plates from China PR, Japan, Korea RP, Ukraine, Russia, Brazil and Indonesia.

The anti dumping duty imposed for a period of five years for HRC at USD 489/MT and USD 561/MT for HR plates & sheets followed by CRC at USD 576/MT and for PPGI is at USD 822/MT

2.Indian Government Impose Safeguard Duty on HR Plates/sheets and Hot Rolled Coils-Indian government has imposed safeguard duty on Hot rolled sheets and plates by 10% for 1st year,8% for 2nd year and 6% for 3rd year on the price which is below USD 504/MT.

Also after the DG (Directorate General) Safeguards' recommendation on 16 Mar' 16, to continue safeguard duty on HRC till March 2018 by 20% on 1st Year,18% on 2nd on year,followed by 15% on 3rd year and 10% on 4th year on the price which is below USD 445/MT.

What may happen in 2018?
1.Imports of color coated steel expected to fall - In the latest notification issued by Ministry of Steel (Govt. of India), several steel products have been brought under the purview of Quality Control. In the latest notification issued on 16 Feb'18, the govt. has announced imposition of BIS from 20 Feb'18. Also Pre-painted Aluminium zinc alloy metallic coated steel strip and sheet (plain) are also subject to BIS.

Indian steel ministry makes BIS standards mandatory for all steel products and imports for all domestically manufactured iron and steel to promote long term growth of domestic steel sector and prevent industry from cheaper imports of China.

2. Limited allocations of exports from Japan and Korea may reduce Indian import volumes - In CY18 it is anticipated that imports from Japan and Korean will remain on lower side since they have limited allocations for exports amid strong prices in domestic market.