India’s finished steel exports stood at 1.15 million tonnes (mnt) in Feb’22, registering a significant increase of around 42% against 0.81 mnt a month ago, as per provisional data released by the Joint Plant Committee (JPC). Similarly, on an annualised basis, steel exports rose by a sharp 77% against 0.65 mnt in Feb’21.
During the eleven months of the current financial year (Apr’21-Feb’22), finished steel exports aggregated to 12.3 mnt, up by 30% compared to 9.49 mnt in the corresponding period last year (CPLY).
The increase in export volumes was majorly driven by strong demand from European and Middle East regions. There was a severe shortage of natural gas in these regions, leading to a spurt in its prices. This forced many steel mills to either opt for temporary closure or curtail production. Thus, downstream (steel users) segment had to rely on imports. In Jan’22, steel imports by Turkey increased by 9% to 1.24 mnt against 1.14 mnt in Dec’21.
In addition, domestic demand remained dull during the period owing to higher prices, which, in turn, shifted Indian mills’ interest towards exports. Also, there was less competition in the overseas markets with Chinese mills adhering to the production curbs, while Japanese and South Korean mills staying focused in supplies to the domestic market amid a surge in shipbuilding demand.
Crude steel production drops 6% in Feb’22
Indian mills produced 10.1 mnt of crude steel in Feb’22, down 6% against 10.78 mnt a month ago. However, on y-o-y basis, production volumes jumped 8% against 9.35 mnt seen in Feb’21.
Major primary mills reported an increase in production on the back of improved capacity ultilisation rates and increased production from new facilities, except, Rashtriya Ispat Nigam Limited (RINL). Operations at RINL plant remained affected due to coal supply shortage. As a result, its hot metal production reduced. RINL’s crude steel production dropped 24% to 0.38 mnt in Feb’22 as against 0.51 mnt a month ago, JPC data shows.
During Apr’21-Feb’22, crude steel production by primary mills jumped 17% to 108.99 mnt in comparison with 93.06 mnt in Apr’20-Feb’21.
Finished steel production edges down to 9.7 mnt in Feb’22
Finished steel production by Indian mills stood at 9.71 mnt in Feb’22, down by 5% as against 10.16 mnt a month ago. Annually, the same rose by 7% compared to 9.05 mnt in Feb’21.
In the last eleven months of the current fiscal year (Apr’21-Feb’22), finished steel production grew 20% to 102.97 mnt in contrast with 86.1 mnt in CPLY.
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