[ad_1]
Following increased shipments coming into the country in previous months, especially from China, India continued to be a net importer of steel for the first nine months of the fiscal year (April-Dec). Imports exceed exports by 0.9 million tonnes for the period under review.
As per a report by the Steel Ministry, accessed by businessline, imports stood at 5.6 mt (vs 4.4 mt), while exports stood at 4.7 mt (vs 4.75 mt). While imports rose 26 per cent YoY, exports dipped 2-odd per cent.
The gap between finished steel imports and exports has widened between the April – Nov and April – Dec periods too. Imports in April- Nov were 4.3 mt, and exports were 4.0 mt, indicating a gap of 0.3 mt.
Finished steel includes non-alloyed offerings, alloyed ones and stainless steel.
Category-wise numbers show a 59 per cent rise in non-alloyed steel imports at 4.0 mt for the 9M FY24, while exports rose by 51 per cent to 4.2 mt. In alloy and stainless steel categories, there was a 17 per cent drop in imports to 1.6 mt, but exports in the segment took a 73 per cent hit to 0.6 mt.
“So Indian mills are witnessing some demand from global markets, particularly Europe. On a month-on-month basis, December numbers are up; while on a year-on-year comparison, December 2023 exports improved on the back of removal of export duty that impacted shipments in 2022,” an official said.
Last year, India imposed an export duty till November’s end, which impacted outbound shipments.
Positive Cues on Exports
According to the Ministry report, finished steel exports surged to 0.65 mt in December, up 175 per cent sequentially (vs November) and up 46 per cent to the year. In November, exports stood at 0.24 mtm while in December 2022, they were 0.44 mt.
Re-stocking in the EU, ahead of the new year holidays and global price recovery, has supported Indian steel exports, market research firm BigMint, formerly SteelMint, said in a report.
Also, towards end-December, 2023, Indian mills resumed hot rolled coil export offers for the Middle East after a three- month hiatus,
Countering Imports
On a MoM basis, imports witnessed a slight 3 per cent decline to 0.73 mt in December 2023 as against 0.78 mt in November.
But on a YoY basis, imports showed an 11 per cent rise. Imports stood at 0.653 mt in December 2022.
India continued to see a steady flow of domestic supplies, which competed with Chinese offerings on price. Chinese hot rolled coil offerings also saw an increase in price/offers – at $575 / tonne in Dec vs $559/ t in Nov.
Against this, Indian steel producers offered hefty rebates on hot-rolled coil (HRC) and cold-rolled coil (CRC) in December, with prices dropping by INR 1,500-2,000/ tonne ($18-24/t) across both products, BigMint said in its report.
[ad_2]
Source link