India Steel Exports to the U.S. Collapsed by 42%

SEATTLE (Scrap Monster): The Indian steel exports to the U.S. plunged 42% during the first quarter of fiscal FY 19. The dramatic decline in export volumes is primarily on account of the recently imposed duty hikes by the Trump administration on imports. India, despite several rounds of negotiations with the U.S. counterparts, has not been able to earn a waiver from steel and aluminum duty hikes.

According to latest data published by the Indian Commerce Ministry, the exports of 68 steel products that fall under the 25% tariff rate have totaled $115 million during the quarter ending June 30 this year. The country’s exports had totaled $198 million during the corresponding quarter in 2017. The overall steel exports to the U.S. too recorded decline of 5.7% in Q2 FY 19 to total $468 million, upon comparison with the overall exports of $496 million during Q2 FY 18.

Meantime, the official data suggests that aluminum exports have gained during the quarter, despite tariffs. The exports of seven aluminum products affected by 10% U.S. tariffs, surged higher by 59% from $103 million to $164 million. Also, the overall aluminum exports totaled $181 million, surging higher by 54% when compared with $118 million during the quarter ending June the previous fiscal. The Commerce Ministry officials noted that it is too early to draw a conclusion based on one-quarter data.

ALSO RAED: AISI Foresees 6.3% Drop in Annual U.S. Steel Imports

According to sources, the country is in negotiation with the U.S. officials on a possible trade package. The negotiations have already completed three rounds, with the U.S. officials slated to visit India shortly for further negotiations. Apart from a waiver from hefty steel and aluminum duties, India is looking forward to key changes in trade preference systems.

Rough estimates suggest that nearly $1.2 billion worth of steel and aluminum exports to the U.S. were impacted by hike in tariffs by the U.S. administration.