Posted on 25 May 2022
Indian hot rolled coil exports fell 4.37% on-year to 6.91 million tonnes in the fiscal year ended 31 March 2022 (FY22), against 7.23mt a year earlier. In March alone, exports inched down 0.74% to 701,029 tonnes, Kallanish notes.
Vietnam was by far the largest market in FY22, despite 24.42% reduced intake on-year to 1.67mt, which was the main reason for the overall export drop. Other major markets for Indian HRC during the year were United Arab Emirates (947,887t), Turkey (880,536t), Italy (641,143t), Nepal (349,253t) and Belgium (322,139t).
In the wake of India’s export duty imposition, the future of HRC exports looks bleaker. Indian mills are requesting authorities rethink the decision and are seeking a grace period to conclude the delivery of already agreed export contracts.
Indian steel secretary Sanjay Singh reiterated the move is intended to support domestic consumption. “If demand and prices are at an adequate level, then all the steel produced by the nation can be consumed domestically. As of now, we haven't received any request on extending or giving a grace period to process the established export contracts,” he said on Tuesday morning. “If we receive such a request, then we might decide on something, on a case-by-case basis."
According to Indian mill sources, around 2mt of export orders are in the pipeline, where either the LC has been generated or the contract signed. The industry fears incurring a huge loss if it does not receive a grace period to conclude contracted deliveries.
“On the one side, the government is encouraging the steel industry to expand capacities and declared a PLI scheme; on the other hand, this move discourages exports," Jindal Steel and Power (JSPL) managing director VR Sharma said on Monday. "Most of the decisions are creating confusion."
Alongside HRC, Indian billet exports plunged in FY22, by 27.71% to 4.77mt. In March, billet exports plummeted 47.26% to 268,497t, against 509,048t a year earlier.
Major importers during the year included China (1.29mt), Nepal (874,505t), Indonesia (585,603t), Sri Lanka (399,980t), Italy (304,579t), Kenya (271,425t), the Philippines (244,713t), and the US (174,511t).
Indian semis have not been included in the export duties, owing to which their exports are expected to grow in FY23.
Source:Kallanish
