India’s steel imports from S. Korea, Japan may rise



Source: THE HINDU

India is likely to witness an increase in steel imports from South Korea and Japan in the near term due to global readjustment of trade patterns after the U.S. imposed a 25% import tariff on the commodity, rating agency ICRA said in a note.

Both South Korea and Japan, which have free trade agreements (FTA) with India, are expected to raise their exports to countries with which they have such pacts, following the move by the U.S.

Together, the two countries exported about 5 million tonnes (mt) of steel to the U.S. in calendar 2017.

ICRA, however, said the impact of U.S. tariffs may not be significant in the medium term as 26 mt of affected imports to that country would be absorbed by the 25 mt increase in the global demand elsewhere, especially in emerging economies.

Also, Chinese steel exports had been declining in the last two years, reaching 75 mt in 2017 from a peak of 112 mt in 2015, providing an opportunity to other countries to fill this gap left by China, by diverting volumes away from the U.S.

Source: THE HINDU