Indian Billet Exports climbs Two-fold in FY 17

Indian billet exports have registered a sharp increase in financial year 2017 (Apr-2016 to Mar 2017), according to data maintained by SteelMint.

Exports have increased on account of rising domestic steel production and depreciated Indian Rupee.

The total export of semi finished goods under chapter 7207 was 1.94 MnT as compared 0.97 MnT in FY 16. Out of total exports 35.71 % was made to Nepal followed by Bangladesh (20.80%) and Thailand (8.50%).

JSW Steel, Vizag Steel, SAIL and JSPL remain key exporters from India.

India is the third largest producer of steel in world has registered production around 97 MnT crude steel per annum.

Reasons for surge in Semis Export:

– There was a boost in production in FY 17 where in supply was more than the demand forced the manufacturers to explore the export option. India’s total crude steel production during FY16 were at 91 MnT which increased by 6.6% to 97 MnT in FY 17.

– Other factor that boosted exports from India were comparatively higher offers from Chinese suppliers & CIS nations owing to which overseas buyer’s preferred Indian material. Current offers for Billet export from India are around USD 390-400/MT, while Chinese offers are prevailing at USD 410-420/MT FoB.

– Weak Indian Rupee: Depreciated Indian rupee was another reason, which supported billet exports.

India Exports Billet/Blooms/Slab (Ch 7207)

Provisional Data
Qty in MT
Sourcers: SteelMint Research, Customs