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