Indian wire rods exports rise nearly 140% in 2021

• Shipments to new markets boost exports to over 1 million tonnes (mnt) in 2021
• Higher production by domestic players pulls up total volumes
• JSW Steel’s share in country’s total exports rises to 44%

India’s exports of steel wire rods recorded a phenomenal growth of 138% y-o-y in calendar year 2021 (CY’21) compared to CY’20, as per data maintained with SteelMint. Exports rose to 1.07 million tonnes (mnt) in CY’21 from 450,000 t (0.45 mnt) in the preceding year.

Exports rose on higher shipments to the traditional importers as well as new markets coupled with substantially higher export allocations by the leading domestic producers. India’s current wire rods annual capacity stands at 12-13 mnt.

Major markets

Neighbouring Nepal remained the leading market for wire rods exports. Exports to the Himalayan Kingdom rose to 256,232 t in CY’21 compared with 220,000 t in CY’20 – an increase of 16% y-o-y.

Taiwan*, with over 197,000 t of imports, witnessed a whopping 939% rise in total shipments from India in CY’21 compared to a meagre 19,000 t in CY’20.

However, the USA recorded the sharpest rise in shipments from India, with wire rods imports climbing to nearly 90,000 t in CY’21 on price disparity between domestics and global prices, SteelMint notes.

Among the new markets for domestic wire rods suppliers, South Korea witnessed total imports of over 70,000 t compared with zero imports in CY’20. Some of the leading steel mills in that country stopped production of commercial grade wire rods in favour of higher grades needed for advanced applications, SteelMint learnt from sources.

In addition, India’s exports to Hong Kong stood at nearly 26,000 t in the year gone by versus nil exports in CY’20.

Exports by India surged due to the sharp fall in steel exports by China in H2CY’21 following cuts in export VAT rebates amid stringent steel production curbs and calls to boost domestic steel supplies in China. As a result, buying enquiries from a host of markets were diverted to India.

Major exporters

Among the leading suppliers, JSW Steel recorded total export shipments at over 472,000 t in CY’21 – over 44% of India’s total annual exports. Higher export allocations by the steel major were due to increased production in CY’21 from the new wire rod mill (WRM) at the company’s flagship Vijaynagar works.

JSW’s standalone wire rods capacity at Vijaynagar is assessed at 1.8 mnt, while the newly-acquired Bhushan Steel Ltd. (JSW-BSL) added another 500,000 t, thereby boosting the company’s total production capacity and export volumes.

Central India-based Godawari Power & Ispat Ltd. (GPIL) exported over 105,000 t in CY’21, while total exports by JSPL stood at over 83,000 t.

While state-owned steelmaker SAIL registered exports at nearly 66,000 t in CY’21, shipments by Tata Steel stood at over 68,000 t, with the share of subsidiary Tata Steel Long Products standing at around 44,000 t.

India’s exports of finished longs rose by a staggering 127% on the year in CY’21 to 2.38 mnt vis-à-vis 1.05 mnt in CY’20.

*Corrected to Taiwan which was previously written as Thailand