Posted on 28 Feb 2022
Indian mills have indicated they aim to fill the void left by suspended Ukrainian steel supply amid Russia’s military invasion of that country, Kallanish notes.
India exported around 481,988 tonnes of finished flat steel to Turkey in 2021 against a mere 177t in 2020, according to data provided by India’s commerce ministry. In January-February 2022, the nation has already exported around 160,000-200,000t to Turkey, while around 150,000t will be exported in March alone, sources inform.
Likewise, the supply disruption from Ukraine also creates a space for Indian steel products in the EU. Indian flat steel exports to the Union surged 36% on-year to 1 million tonnes in 2021, against 740,500t in 2020. The nation has already exported over 380,000t for the EU quota term through March.
“Supply disruption in EU regions could also result in near-term demand for Indian steel and engineering products,” says India brokerage firm Sharekhan research head Sanjeev Hota. “Also, there could potentially be tactical near-term benefits for India as China, a close ally of Russia, could defy sanctions. That could result in global companies looking for alternative supplies for speciality and other chemicals from India.”
According to sources, Indian mills have withdrawn all offers for March shipment. Mills have refrained from offering to their major markets, including Vietnam and the Gulf Cooperation Council. Suppliers are expected to come back once there is more clarity on the course of the war in Ukraine.
Owing to downward steel price pressure in China, buyers had anticipated a price correction in Indian offers. But due to supply constraints amid the Ukraine-Russia war, Indian mills are likely to try to achieve higher prices.
Source:Kallanish
