(Adds South Korean steel plate price in paragraph 9, graphics)
By Manolo Serapio Jr and Yuka Obayashi
MANILA/TOKYO, April 15 (Reuters) - As the world reels from a flood of cheap Chinese steel, other countries including Japan and South Korea are selling products overseas at prices as much as a third lower than in their home markets, according to industry data and officials.
The underpricing by the world's second and third biggest steel exporting countries underscores the pressure facing steelmakers around the globe as the industry grapples with chronic oversupply and sluggish demand.
India's Tata Steel has blamed a flood of cheap steel imports for a decision to pull out of Britain, putting 15,000 jobs at risk, while one of Australia's only two steelmakers, Arrium Ltd, has been placed in administration, a form of bankruptcy.
Top producer China has taken much of the blame for plant closures, but other steelmakers are similarly fighting to stay in business.
Japanese companies are selling steel overseas cheaper than in the domestic market partly to compete with China, said an official at a Japanese steel producer, declining to be named because he didn't want to discuss pricing strategies publicly.
The price is also higher locally to cover the "extras" that steelmakers provide clients such as specific delivery times and services including product quality that make it easier for customers to process them, the producer said.
"That's something many foreign makers cannot offer," he said.
MARGINAL COSTING
H-beam, used in construction, is sold in Tokyo at 69,000 yen ($629) a tonne and is exported at $470 a tonne, free-on-board, according to data from Japanese and Chinese agencies that track the prices.
South Korean hot-rolled steel plate was exported at $522 a tonne on average last year, less than the domestic price of $581 a tonne, according to Korea Iron & Steel Association data.
"As far as the importing country is concerned, it is nothing but dumping from these countries," said Seshagiri Rao, joint managing director at India's JSW Steel Ltd.
Japan and South Korea export steel at prices that are 35 percent lower than their domestic prices, said Rao.
"If they are making money in the domestic market, by exporting, as long as they're able to recover some contribution towards their fixed cost, they're pushing volume," he said.
Countries, responding to rising imports and complaints from local producers, are imposing protections and raising objections through international channels.
India in February set a floor price for imports of steel products to deter exporters from undercutting domestic mills, having seen imports from Japan and South Korea jump by almost half in April-February.