Posted on 24 Nov 2020
Steel exports, after a highly subdued festive season across the country, are mirroring the same trend in November, 2020. Traders SteelMint spoke to said that there has been no activity in exports in the current month.
"There is nothing to write home about. Exports activity has been almost nil in the current month," said a trader. Other sources added that they have "no idea" as to when the mills would return to the exports market or by when domestic demand, a reason why exports are dull, would likely go down again.
While there were unanimous views on the lack of exports activity in November, it was indicated that Tata Steel did a couple of deals. This steel major sells directly it is understood and that it had concluded 1-2 deals to Vietnam of around 25,000-30,000 tonnes.
Another trader, referring to price movements, said: "Seriously, there is nothing to report. There is no offer price from mills," adding: "You can only compare when there is an offer."
That November would be a subdued month was evident from September itself since traders had not seen any large or significant new bookings being made for shipments in this month.
However, small lots keep happening, especially from the major mills to neighbouring countries or to South East Asia. But these are routine consignments and/or part of long-term contracts.
No one wanted to hazard a guess on what December would be like.
Oct exports down 35% m-o-m
Exports in October were down 35% month-on-month (m-o-m), on a provisional basis, to 1.02 million tonnes (mn t) compared to 1.58 mn t in September. In fact, provisional October export volumes were in line with predictions made by one trader, at around 1 mn t.
Billets, which comprised the larger share in both September (also provisional) and October, at 0.79 mn t and 0.49 mn t respectively, were down around -38% m-o-m.
Finished longs, which always comprise a thin share in the entire volume of exports, were down -36% m-o-m at 0.7 mn t in October against 0.11 mn t in the previous month, while finished flats at 0.46 mn t in October, were down almost -33% against 0.68 mn t in September.
Exports, after touching a record high of 2.56 mn t in June, 2020 have been steadily decreasing to 2.49 mn t in July, 1.8 mn t in August, 1.58 mn t in September and 1.02 mn t in October, on the back of rising domestic demand. June, it may be recalled, was a distress month post-lockdown and exports were the only refuge of mills, to keep them going.
Source:SteelMint
