Posted on 08 Dec 2021
Plunging steel demand in the global market coupled with falling prices have impacted Indian coking coal and iron ore imports. Indian coking coal imports inched down 1% on-year to 5.29 million tonnes in November, against 5.37mt a year earlier. Iron ore imports plunged 49% to 3.1mt during the period, against 6.1mt last year.
Semi-finished and finished steel demand in the Indian domestic and export markets is down, which has led to a drop in steel prices. Indian-origin HRC 2mm+ SAE 1006 offers dropped to $800/tonne fob India; similarly, billet offers are heard at below $600/t. Owing to the downward trend in the market, Indian mills have reduced their production and imports, various sources tell Kallanish.
Against the industry's anticipation of crude steel production growth in the fiscal year ending 31 March 2022, demand and imports are heading south. In April-November, coking coal imports surged 6% on-year to 33.52mt, against 31.6mt last year, but iron ore intake plummeted 24% to 33.87mt, against 44.49mt.
Source:Kallanish
