India : Sluggish Domestic Demand Lower Flat Steel Imports in Sep'19

According to the released customs data, Indian finish flat imports plunged by 13% to 0.52 MnT in Sep'19 over 0.6 MnT in the preceding month owing to gloomy sentiments prevailing in the domestic market.

Competitive domestic HRC offers in India amid significant decline in domestic steel prices along with liquidity crunch & monsoon seasons lowered imports to India from FTA countries.

Meanwhile, Indian traders kept themselves away from steel imports in the purview of ongoing talks regarding the imposition of safeguard duties on imports coming from FTA countries.

However, in the first half of FY20 Indian flat steel imports inched up by 3% to 3.26 MnT as compared with 3.16 MnT in H1 FY'19 owing to trade diversion from Japan and Korea to India amid the announcement of 25% tariffs on steel imports by the USA in Mar'19. This led to an increase in imports to India from FTA countries in H1 FY'19.

Indian HRC/plate imports declined by 27% in Sep'19- Nation's HRC/plate imports plunged by 27% M-o-M in Sep'19 to 0.19 MnT as against 0.26 MnT in the preceding month.

Also, imports of CRC to India slashed by 33% to 0.04 MnT in Sep'19 over 0.06 in the prior month. Along with this Galvanized coil imports reported fall by 27% to 0.08 MnT in Sep'19 as compared to 0.11 MnT in the previous month.

However, imports of electrical steel surged by 24% M-o-M to 0.21 MnT in Sep'19, which was 0.17 a month ago.

Imports from South Korea drops by 22% M-o-M in Sep'19- India's imports from South Korea accounted for 0.25 MnT in Sep'19 plunged by 22% as compared to 0.32 MnT a month ago.

Following this import from Japan halved on a monthly premise to 0.06 MnT in Sep'19 as against 0.12 MnT in Aug'19.

However, imports from China doubled to 0.16 MnT in Sep'19 over 0.08 MnT in the previous month.

Flat steel imports at Mumbai port fell by 27% M-o-M in Sep'19- Flat steel imports at Mumbai port plunged by 27% to 0.16 MnT in Sep'19 as against 0.22 MnT a month ago.

Indian flat steel imports at the Chennai port dipped by 31% to 0.09 MnT in Sep'19 over 0.13 MnT in the preceding month.

Other major ports include Mundra at 0.12 MnT in Sep'19 which was 0.05 MnT in last month. JNPT at 0.03 MnT in Sep'19 against 0.05 MnT in the previous month and Kandla at 0.04 MnT in Sep'19 against 0.07 MnT a month ago.

Major flat steel importers in Sep'19- POSCO India was the major flat steel importer in Sep'19. Other major flat steel importers were Welspun, Elec Steel Processing Industries, and Man Industries India Ltd. followed by Hyundai Steel India Pvt Ltd and Jindal Saw Ltd.

Product-Wise Flat Steel Importers in Sep'19

Source: Customs Data, SteelMint Research