Indian bulk HRC export shipments in Apr ’21, amounting to 3,49,388 tonnes (t), jumped 74% year-on-year (y-o-y) as compared to 20,000 t seen a year ago, as per data maintained with SteelMint.
Reasons driving HRC export volumes
1. Higher export realizations: Major Indian mills are preferring exports due to higher price realizations since demand in the domestic market is dull amid ongoing lockdowns. Indian HRC export offers recorded a jump of $161/t to $926/t FoB basis in Apr ’21 against $765/t FoB seen in Mar ’21. Recently, HRC export offers to Vietnam were at around $1,080/t CFR and around $1,300/t CFR for June-July shipments.
2. Healthy demand for HRC in Vietnam market: In April, Hoa Phat recorded a 55% growth in galvanized sheet products. Thus, due to increased demand for downstream products in Vietnam, prices of HRC continue to remain robust. Also, Vietnam importers are actively booking HRC from India on fears of a further increase in prices.
3. Sluggish demand in domestic market: As coronavirus cases keep rising, several states have announced stringent restrictions, including night curfew, while even mulling lockdowns in their efforts to curb the spread of the virus. Various states, namely, Maharashtra, Uttar Pradesh, Punjab, Chhattisgarh and others are under lockdown and economic activities are being severely affected. India’s domestic steel consumption was at 6.725 mn t in Apr ’21, down 26% month-on-month (m-o-m) against 9.052 mn t in Mar ’21, according to provisional data released by the Joint Plant Committee (JPC).
Country-wise HRC exports
- Italy imported around 1,60,038 t in April in comparison to 1,32,350 t in the preceding month.
- Vietnam imported around 35,000 t of HRC in April as against 47,110 t a month ago.
- Spain imported about 57,000 t of HRC in April as against 58,958 a month ago
Port-wise HRC exports in Apr ’21
- Mormugao Port shipments stood at 71,003 t.
- Dhamra Port shipments were at 72,320 t in the same month.
- Hazira Port shipments stood at 70,000 t.
- Paradip Port’s shipments were at 1,00,965 t in Apr ’21 compared to 97,110 t a month ago.
Company-wise exports
- ArcelorMittal Nippon Steel India increased its exports by a sizeable 52% to 70,000 t in April against 46,000 t in the preceding month.
- Tata Steel’s export volumes dropped by 42% to 1,27,320 t in April against 2,21,310 t in Mar ’21.
- JSW’s export volume declined by 67% to 71,003 t in April as against 2,13,135 t in March.
Outlook
Indian mills are largely focusing on exports over the domestic market due to sluggish demand on announced lockdowns. Also, higher realizations in overseas markets and improved demand for HRC from importing countries may increase the volumes of exports in May.
*correction
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