Indian steel mills are concerned about increased steel imports from South Korea and Japan
India's steel imports in April are down 6 percent from the same period in 2018, but local steelmakers are concerned about increasing imports from South Korea and Japan.
According to the Ministry of Steel, the total volume of steel imports in April 2019 amounted to 630,000 tons against 671,000 tons in April 2018.
South Korea was the largest exporter to India in April, with total steel shipments of 245,000 tonnes and an annualized increase of 15 percent. Japan follows with 116,000 tonnes of imports, up 27 percent from 2018.
South Korea and Japan are exempt from the 10 percent duty on long products and 12.5 percent on flat products as they have a free trade agreement with India. They also do not have to pay an anti-dumping duty on hot rolled coil (HRC) below the base price of $ 489 per ton, unlike Russia and China. But they have to pay a 10 percent protective duty on HRCs sold below the base price of $ 445 per tonne.
The Indian Steel Association, representing the six largest integrated steel companies, has called on the government to impose a protective duty of 25 percent on all imported steel products in accordance with the US-imposed tariff (section 232), regardless of base prices.
“It was the US trade measures and China's response to them that led to a reorientation of steel trade to India, especially from Japan and South Korea,” said JSW Steel Managing Director Seshagiri Rao.