India’s finished steel exports rose by 31% m-o-m to 0.44 million tonnes (mnt) in December 2022 from 0.33 mnt a month ago. However, export volumes plunged by a steeper 45% y-o-y against 0.79 mnt in December 2021, as per provisional data released by the Joint Plant Committee (JPC).
During April-December, 2022, export volumes dropped by 54% y-o-y to 4.741 mnt from 10.329 mnt in the same period last year.
Why did exports rise?
- Removal of export duty: The 15% export duty on clad or plated non-alloyed flat steel products, which was levied from 22 May, was revoked on 19 November. The aftermath of the removal of the export duty saw Indian mills booking good volumes to the traditional markets of the Middle East, Vietnam and Europe for December and January deliveries.
- Improved demand from Europe: Demand from Europe is showing an improvement as service centres and other buyers have replenished their depleted stock levels. Over the past few months power cost concerns, an appreciating USD and declining prices had kept buying interest low for imported products. Also, reports reveal that buying interest has increased by Euro 20-30/t ($-) w-o-w to Euro 650-680/t ($693-725) ex-works in the last week of December.
Crude steel production edges up 1% m-o-m in Dec’22
Crude steel production by Indian mills stood at 10.5 mnt in December, up 1% from 10.443 mnt in November. Crude steel output remained stable y-o-y compared to 10.488 mnt a year ago.
Crude steel output volumes of all major primary mills showed an increase in December. Shutdown for maintenance was completed in July-September and mills have been operating smoothly since.
During April-December, crude steel output rose 5% y-o-y to 92.462 mnt against 88.047 mnt in the same period last year.
Finished steel production drops 1% m-o-m in Dec’22
India’s finished steel production stood at 9.776 mnt in December, dropping 1% m-o-m as against 9.825 mnt in November. Moreover, production fell 3% y-o-y compared to 10.079 mnt in the preceding year.
Finished steel production increased by 6% y-o-y to 87.867 mnt during April-December as against 83.100 mnt in the same period last year.
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