India’s total export shipments of steel billets and blooms touched 304,661 MT in April CY20 with the major shippers being JSPL, JSW and Tata Steel. Going by current bookings, forecasts are that total exports of semi-finished products are set to soar to around 600,000 MT in May.
JSPL Leads the Way
JSPL alone accounted for over 200,000 MT of billets export shipments in April via the eastern Indian ports of Paradip and Visakhapatnam. As many as seven shipments were recorded by JSPL with total cargo volumes ranging between 30,000 and 40,000 MT – the destinations being China and the UAE.
China Factor
India’s bulk ocean exports of billets and blooms have spiked considerably in April compared to the first three months of 2020. This could, in part, be attributed to sinking domestic demand but steel cargo pile up at ports is indicative of healthy overseas sentiments, especially demand emanating from China which is limping back to manufacturing normalcy after the lockdown triggered by the Covid-19 pandemic.
Chinese interest in Indian semis arises due to higher production costs per tonne of crude steel in that country compared to imports. Experts opine that rising semis exports to China could continue for another 2-3 months while Chinese BFs ramp up operational capacity fully after the coronavirus-induced lull in the market.
Meanwhile, Indian integrated producers, sitting on stockpiles of semi-finished products with BFs continuing production at reduced capacities amid the lockdown, are eager to tap into the growing exports market.
~ By Nirmalya Deb
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