Indian finished steel exports witnessed a massive increase of 66% in H1 FY ’21 to 6.54 mn t in contrast with 3.94 mn t in the CPLY, as per the data released by Joint Plant Committee (JPC) today,
- The manufacturers had increased their export allocations during the Apr-Jun quarter amid COVID-19 induced hindrances in domestic market activities.
- Meanwhile, competitive offers from India attracted importers based in China, Vietnam, and the Middle East .
- However, on monthly comparison basis, exports have moved down to 0.86 mn t in Sept’20 from 1.03 mn t in Aug’20, registering an m-o-m drop of 16%. Amid better realization in the domestic market, the mills have curbed their export allocations, resulting in a sizeable export drop. We expect export volumes to come down further on recovery in domestic demand.
Finished steel imports halved during H1- The finished steel import volumes halved to 1.99 mn t in H1 FY ’21 as against 4.02 mn t in H1 FY ’20. Reduced market activities amid lockdowns and logistical barriers led to the fall in volumes.
Crude steel production down by 22% in H1- The Indian steel manufacturers collectively churned out 42.89 mn t of crude steel in H1 FY ’21, down by 22% compared to the 55 mn t in H1 of the previous fiscal.
The steel mills had reduced their capacity utilization during the lockdown period with strict regulations restricting the number of workers in the factory premises to reduce the infection cases.
However, most of the mills are now working at the top of their rated capacity since Aug ’20.
Finished steel consumption plunged by 31% in H1 – India’s finished steel consumption declined significantly by 31% to 35.40 mn t in H1 of the current fiscal in comparison with 50.99 mn t in a similar time frame of FY ’20.
Majority of downstream units like auto etc were not operational in Apr’20, lowering steel consumption. However sharp recovery in auto, white goods and infrastructure are likely to further escalate country’s steel consumption in the coming months.
Source- JPC,DO report
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