Indian finished steel export surges while imports plunge in 9M FY ’21-JPC data

• India’s finished steel exports have surged by 28% 
•  India’s finished steel imports declined significantly by 42% 
• Indian crude steel output stood declined by 13%  
• Finished steel consumption stood at 63.46 mn t

India’s finished steel 9M FY ’21 exports has surged by 28% to 8.31 mn t as against 6.52 mn t in CPLY, according to provisional data released by Joint Plant Committee (JPC).

• The export volumes have remained high with increased exports during the Apr-Jun quarter on weaker domestic market activities showing a 66% surge in volumes in H1 FY ‘21.
• However, the exports started to decline in early July with the resurgence of restocking demand and since then the market sentiments have been gradually improving.
• Further, the nation’s monthly exports grew marginally by 3% to 0.62 mn t in Dec ’20 in comparison to 0.60 mn t in Nov ’20, while it declined by 19% on a y-o-y basis.

Finished steel imports plunged by 42% 9M FY ‘21
During 9M FY ’21, India’s finished steel imports declined significantly by 42% to 3.21 mn t as compared to 5.51 mn t in a similar time frame of previous year. However, Dec ‘20 saw imports go up by 17% y-o-y basis and stood at 0.51 mn t. However, compared to Nov’ 20 when 0.35 mn t was imported, the increase was by a hefty 46%.

Crude steel production was down by 13% 9M FY’21
Indian crude steel output for 9M FY ’21 was reported at 71.94 mn t, declining by 13% in comparison with 82.30 mn t in CPLY. Lower capacity utilization by steel producers during the Apr-Aug period and maintenance shut-down in the following months continued to weigh on output volumes.

However, on a monthly basis, the output increased marginally by 2% against 9.25 mn t in Nov ’20. Further, volumes remain unchanged on a y-o-y basis.

Finished steel consumption slumped by 17% 9M FY ’21
Nation’s crude steel 9M FY ’21 consumption aggregated to 63.46 mn t, down by 17% from 76.24 mn t in the same period the previous year. Against the 31% plunge in H1 FY ’21 at 31.50 mn t, the increase in demand from the auto and white-goods sectors along with the revival of the construction industry with govt investments in the Oct-Dec quarter has led to a gradual increase in domestic consumption.

Meanwhile, the same was up by 5% to 9.15 mn t as against 8.72 mn t in Nov ’20. Similarly, consumption surged by 6% y-o-y to 9.15 mn t in Dec ’20 against 8.65 mn t in Dec ’19.