Posted on 20 Aug 2020
Indian finished steel consumption plummeted -55% on-year in India’s first fiscal quarter through June (FQ1), which mills offset with a 145% surge in exports, according to Joint Plant Committee (JPC) data.
Finished steel consumption dropped to 11.14 million tonnes. Bar and rod consumption fell -52% in the quarter to 4.55mt and non-alloy hot rolled coil consumption was down -58% to 4.31mt, Kallanish notes.
Finished steel exports surged to 3.27mt. Non-alloy HRC exports soared 287% to 2.41mt, while China took a 30% share in overall finished steel exports.
Imports fell -33% in the quarter to 1.21mt, meaning India was a net exporter. Non-alloy HRC was the most imported item at 255,000t, down -46%, while South Korea took a 43% share in overall imports. Finished steel imports from China declined -8%.
Finished steel output fell -51% to 12.94mt. Bar and rod production declined -60% to 4.4mt and non-alloy HRC output fell -39% to 6.51mt.
Indian mills stepped up exports in April and May when the nationwide Covid-19 lockdown paralysed domestic demand. However, local market activity has begun to recover since June and is expected to accelerate in the December quarter, helped by government infrastructure spending. This has seen Indian mills redirect export tonnages to domestic buyers in recent weeks.
Source:Kallanish
