Posted on 22 Dec 2022
India's finished steel imports climbed by 93pc in November, making the country a net importer for the second consecutive month, while exports hovered around three-year lows.
Imports last month of 600,300t were the highest since October 2019, while April-November finished steel imports were up by 23pc on the year to 3.75mn t, provisional data from the steel ministry's joint plant committee (JPC) show. Finished steel comprises alloyed and non-alloyed steel.
Hot-rolled coil (HRC) imports in November stood at 62,700t from Russia, 11,800t from Japan and 600t from China, according to Argus' calculations. HRC imports in April-November from Russia stood at 158,400t, from Japan at 39,600t, from Vietnam at 21,100t and from China at 19,300t, JPC data show.
"Given the limited growth opportunities in key global steel-producing hubs of China, Japan, South Korea, CIS, Europe and the US, finished steel exports to India have been steadily increasing… global steel trade flows, especially from the FTA countries (Japan/ South Korea), Russia and China can be redirected in greater volumes to India, keeping imports at an elevated level in the fiscal year 2023-24 as well," according to ratings agency ICRA.
Exports of finished steel declined by 53pc on the year in November to 338,000t — the lowest since June 2019, according to JPC. Vietnam was the top export destination for finished steel in November with 59,900t, followed by Nepal with 49,200t and Belgium with 18,000t, according to Argus' calculations.
The Indian government withdrew the 15pc export duty on steel products on 19 November, but weaker international markets have failed to firmly revive shipments.
"While India's finished steel exports are expected to gradually increase from the November lows following the withdrawal of export duty, it is unlikely to go back to levels seen in fiscal-year (FY) 2021, FY2022, even in FY2024," ICRA said.
Production of finished steel last month rose by 6.4pc on the year, but dipped by 1.6pc on the month at 9.83mn t, while consumption increased by 12pc against the previous year but dipped by 5.3pc on the month to 9.57mn t.
Crude steel production in November rose by 5.7pc on the year and was flat on the month at 10.4mn t. Hot metal production rose by 9.4pc on the year at 6.74mn t, while pig iron output rose by 5.2pc to 451,000t.
| Indian steel exports and imports | 000t | |||||
| Nov-22 | Nov-21 | ± % | Apr-Nov 2022 | Apr-Nov 2021 | ± % | |
| Exports | ||||||
| Semis | 88 | 345.6 | -74.5 | 1,201.60 | 3,853.70 | -68.8 |
| Non-flat products | 25 | 101.6 | 75.4 | 401.9 | 1,611.40 | -75.1 |
| Flat products | 62.1 | 543.9 | -88.6 | 2,004.30 | 7,174.10 | -72.1 |
| Alloy steel | 252.3 | 76.5 | 229.7 | 1,911.20 | 752.6 | 154 |
| Total steel | 427.4 | 1,067.60 | -60 | 5,518.90 | 13,391.80 | -58.8 |
| Imports | ||||||
| Semis | 43.5 | 10.4 | 318 | 204.1 | 82.1 | 149 |
| Non-flat products | 15.3 | 5.2 | 191.6 | 105.8 | 108 | -2 |
| Flat products | 375.5 | 178.5 | 110.4 | 2,050.70 | 1,790.70 | 14.5 |
| Alloy steel | 246.6 | 130.7 | 88.6 | 1,780.70 | 1,191.40 | 49.5 |
| Total steel | 680.9 | 324.9 | 109.6 | 4,141.30 | 3,172.20 | 30.5 |
| Source: JPC | ||||||
Source:Argus Media
