India’s bulk HRC exports shot up and stood at 43,89,899 MT in (Apr’19-Mar’20) FY’20 in contrast with 13,97,981 MT in the FY’19 according to bulk vessel line up data, maintained with SteelMint.
Reasons behind a significant surge in exports are as follows:
1. Sluggish domestic demand– During the last monsoon period in Indian domestic steel prices witnessed significant fall which shifted the interest of steel manufacturers to exports. Domestic HRC prices fell to over 3-yrs low in Oct’19.
2. Competitive offers- Indian steel mills aggressively exported HRC to Vietnam and other foreign markets at competitive prices as compared to China as it attracted buyers to make bookings in large volumes.
Indian HRC exports to Vietnam jump five-fold-
— Indian manufacturers actively booked HRC for exports to Vietnam which summed to 17,83,661 MT in FY’20 in contrast with 3,48,619 MT in the previous fiscal.
— Exports to UAE also rose manifold and stood at 6,01,201 MT in FY’20 compared with 2,82,821 MT in FY’19.
— Other major nations to import HRC from India in FY’20 were- Italy at 3,57,911 MT, Malaysia 2,72,437, Oman at 2,64,030 MT, and Spain at 1,30,420 MT.
Port-wise Indian HRC exports in FY20-
Dhamra port accounted for the largest share in Indian bulk HRC exports at 9,07,142 MT in FY20 as compared with 2,51,260 MT in FY’19. Export volumes from Paradip port stood at 8,87,566 MT in FY’20, which was 4,21,069 MT in FY’19. Other major ports were Mormugao, Chennai, Hazira etc.
Tata Steel remained the largest exporter-
– Indian major steel producer, TATA Steel (including Tata Steel BSL) exported an aggregated volume of 20,43,221 MT in FY’20 in contrast with 6,97,646 MT in the previous fiscal. Other major exporters in FY20 were – JSW Steel (15,12, 036 MT), AM/NS, SAIL etc.
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