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Indian Bulk HRC Imports from Korea Rise on Traders Booking - Shipping Data

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14 Feb 2019, 19:41 IST
Indian Bulk HRC Imports from Korea Rise on Traders Booking - Shipping Data

As per the vessel line up data maintained with SteelMint, Indian bulk HRC imports reported surge in first two months of CY19. Import volumes particularly from South Korea have reported sharp increase by around eight fold in Jan'19. Since customs duty remained zero from Japan/Korea amid Free Trade Agreement, import bookings increased.

SteelMint earlier reported import bookings of HRC from South Korea at USD 525/MT CFR basis for Feb shipments,for which landed cost was comparatively cheaper than domestic prices

Imports at Mumbai port jump multi fold - Mumbai imports are generally commercial grade and for trading purpose. As per port wise bulk data imports at Mumbai port stood at 1,21,191 MT in Feb'19 which was 1,03,740 MT in Jan'19 and 21,295 MT in Nov'18.Cargoes at other ports are booked by mills which are mostly API grade.

Port wise Bulk Imports

Port NOV'18 DEC'18 JAN'19 FEB'19 Grand Total
MUMBAI 21,295 4,600 1,03,740 1,21,191 2,50,826
CHENNAI 43,253 47,175 98,629 38,978 2,28,035
HALDIA 68,340 26,471 34,177 - 1,28,988
MUNDRA 36,664 43,533 20,707 1,851 1,02,755
KANDLA 26,961 - 14,512 4,909 46,382
PARADIP - - 21,000 - 21,000
KRISHNAPATNAM 10,645 10,000 - - 20,645
Bulk Total 2,07,158 1,31,779 2,92,765 1,66,929 7,98,631

Fig in MT
Source- SteelMint Research

Why Indian HRC Imports Surged from Korea in last three months?

1.Fall in Global HRC export offers- Chinese HRC export offers started falling significantly from the month of Oct'18.Following this other nations like Japan,Korea and Indian mills also corrected their HRC export offers for overseas buyers.

On the contrary,Indian mills were offering HRC in domestic market on higher side which in turn results to surge in HRC imports to India.

2.South Korea flat steel exports to India up by 44% in Jan'19- As per the country-wise bulk imports data maintained with SteelMint South Korea exported 1,84,096 MT of HRC and CRC to India in Jan'19 which was 24,339 MT in Dec'18.Also in the month of Feb'19 the same reported 1,03,005 MT of imports from South Korea.

Country-wise Bulk Imports

COUNTRY NOV18 DEC18 JAN19 FEB19 Grand Total
SOUTH KOREA 77,701 24,399 1,84,096 1,03,005 2,62,584
CHINA 47,671 20,971 25,000 13,394 1,07,036
VIETNAM 27,525 21000 21,000 - 69,525
JAPAN 6,650 12,264 8,056 37370 64,340
MALAYSIA 20,800 11,889 - - 32,689
INDONESIA 5,297 8,075 18,500 - 31,872
TAIWAN 12,918 - 16,125 - 29,043
UKRAINE - 12,100 - - 12,100
PHILLIPPINES - 10,000 - - 10000
UAE - 8,900 - - 8,900
JAPAN - 1,181 4,497 - 5,678
N/A 8596 1,000 15491 13160 38,247
Grand Total 2,07,158 1,31,779 2,92,765 1,66,929 7,98,631

Fig in MT
Source- SteelMint Research

3.Indian steel mills approach govt to impose MIP in order to curb steel imports - In the recent investor's call,Steel Authority of India Ltd (SAIL) had mentioned that steel mills are pursuing with government to re-impose Minimum Import Price (MIP) on steel imports citing rising imports. Steel mills justified that market dynamics of iron ore and coking coal have changed since anti dumping duty was imposed which is calculated on the basis of MIP.

As per reports, major Indian mills have put up a request to the government to implement higher duties to curb steel imports to India.

4.Trade Diversions for HRC post imposition of USA tariffs- Amid imposed USA tariff on steel imports has lead to trade diversion of HRC exports from South Korea to India which can be attributed for surge in HRC imports to India.

14 Feb 2019, 19:41 IST

 

 

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