Indian Bulk Billet Exports Fall 61% M-o-M in Jan’20

During Jan’20, bulk billet/bloom exports from India were recorded at 137,600 MT and witnessed an M-o-M drop of 61%. The same were at 352,110 MT during Dec’19.

Reasons behind decline in exports are as below-

Strong domestic demand- Indian mills remained active in domestic market amid decent demand resulting in fewer allocations for exports. For instance, SteelMint’s domestic billet assessment on monthly average basis for Mumbai increased by INR 2,500/MT M-o-M in Jan’20. According to SteelMint Analysis, the global billet market is expected to remain slow in coming month; Feb’2020 amid corono virus outbreak as construction activities will remain slow specially in Far East and South East Asia countries.

Holidays- Majority of countries go on vacation mode amid New Year and Ted holidays respectively resulting in limited buyers in the market.

Weak demand from China- Demand from Chinese mills remained slow as domestic billet prices observed correction.

SAIL remained the largest exporter – SAIL remained the largest bulk billet/bloom exporter in Jan’20 at 70,600 MT and share of 51% followed by Vizag Steel (29% share).

Meanwhile, during Jan’18-20, India bulk billet/bloom exports have grown at a CAGR of 38% from 72,000 MT in Jan’18. The same has registered a Y-o-Y growth of 95% in Jan’2020 from 70,500 MT in Jan’19.

Indian bulk billet & bloom exports

Provisional data
Source: SteelMint