Indian bulk HRC export shipments rose by 7% in Feb ’21 after falling for two consecutive months, as per data maintained with SteelMint. In Feb ’21, export volumes aggregated 2,83,507 t against 2,65,622 t in Jan ’21.
SteelMint dissects the reasons behind increasing exports-
1. Subdued demand in domestic market- Limited buying inquiries and the absence of healthy sales have resulted in tepid demand in the local market. Traders and distributors are procuring need-based materials in limited quantities. Major stockists and distributors are holding decent inventories and seem reluctant to procure material at higher prices. Thus, slow demand has started to dampen domestic prices.
2. Decline in domestic HRC prices in Feb ’21- Major steel manufacturers have corrected HRC prices by INR 1,000-1,500/t in Feb ’21 on sluggish sales in domestic market. Pessimistic sentiments in domestic market shifted interest of Indian mills to explore export avenues.
3. Competitive offers in export market- Indian mills remained highly interested in exporting HRC to EU region on higher price realizations as compared to local prices. Major HRC importing nations in Feb ’21 were-Italy stood at 68,480 t , UAE at 66,898 t, followed by Vietnam at 50,049 t*.
4. Indian mills have increased their production levels- JSW has reported an increase in capacity utilization to 96% in Jan ’21 which was 89% in Dec ’20. Meanwhile other major steel mills have ramped up their production post COVID. Thus, mills have increased their allocations for exports to overseas market
Port-wise HRC export shipments- Dhamra was the busiest port in Feb ’21 where exports touched 88,580 t. Other major exporting ports in Feb ‘21 were, Mormugao 69,168 t, Hazira 59,350 t, and Paradip 51,409 t.
Company-wise shipments- Major exports of HRC were made by Tata steel in Feb ’21 of about 1,10,419 t. Followed by JSW steel at 84,168 t and AM/NS India at 59,350 Feb ’21. SAIL exported only 1,360 t in Feb ’21.
Outlook- Indian mills foresee healthy exports. The bookings have been so robust that SteelMint understands Mar ’21 export volumes, including longs and flats, would cross the 1mn t mark easily surpassing February figures, which are likely to be around 0.6-0.7 mn t. Most mills are sold out for Mar ’21 and fresh offers pouring in at present are for Apr ’21 shipments.
Note: *Correction has been made in figures of Vietnam which were earlier written as Singapore & Romania
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