India’s finished steel exports registered a decline of 38% m-o-m to 0.36 million tonnes (mnt) in October 2022 in contrast with 0.57 mnt a month ago. Export volumes plunged 66% y-o-y against 1.05 mnt in October 2021, as per provisional data released by the Joint Plant Committee (JPC).
During April-October 2022, export volumes declined by 55% y-o-y to 3.961 mnt from 8.809 mnt in same period last year.
Why exports plunged?
- Subdued demand from overseas: Major domestic steel manufactures are facing low buying interest from the global market, especially Vietnam and Middle East (ME) where mills are focused on retaining their domestic market particularly for hot rolled coils. Moreover, domestic market activities remained lacklustre in October due to the Diwali holidays.
- Competitive offers from other exporting nations: HRC export offers from other exporting nations were competitive against Indian offers, which weighed on HRC export prices. Russia’s Black Sea HRC (SAE1006) offers stood at $528/t FOB levels, while South Korean offers were at $570/t FOB. Meanwhile, India’s HRC (SAE1006) export offers were around $573/t FOB during late-October. The appreciation of the dollar against other currencies was the prime reason behind increased competition on the global platform.
Crude steel production up 4% m-o-m in October
Crude steel production by Indian mills stood at 10.237 mnt in October, up 4% from 9.873 mnt in September 2022. On an annual basis crude steel output rose marginally by 1% compared with 10.178 a year ago.
The major mills were mostly done with their maintenance shutdowns during the July-September period amid slow domestic consumption and 15% export duty restraining exports. Thus, volumes increased in October with capacities coming back onsteam.
During April-October, crude steel output rose 5% y-o-y to 71.293 mnt against 67.708 mnt in the same period last year. It bears recall that production was impacted because of the diversion of oxygen for medical purposes during the Covid emergency in the same period of last fiscal.
Finished steel production up 6% y-o-y in April-October
India’s finished steel production stood at 9.845 mnt in October, up 2% m-o-m as against 9.649 mnt in September. Production remained unchanged on an annual basis.
Finished steel production increased by 6% y-o-y to 67.895 mnt during April-October as against 63.787 mnt in the same period last year.
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