India’s hot dipped galvanised iron (HDGI) exports have dropped almost 25% to 0.36 million tonnes (mn t) in Jul ’21 m-o-m compared to 0.27 mn t in Jun’21. y-o-y, however, HDGI exports spurted by 181% compared to 0.15 mn t seen in Jul’20.
Over Jan-Jul’21, exports of the material were at 2.27 mn t compared to 0.63 mn t seen over the same period in Jan-Jul’20, a more than 2.5-fold jump.
Interestingly, HDGI exports from India have risen sharply since March this year. From a mere 46,850 tonnes in Jan’21 these rose to 88,000 tonnes in Feb’21 but shot up 172% to 0.24 mn t in Mar’21 m-o-m. Thereafter, volumes remained high at 0.23 mn t, and almost 3 mn t in Apr’21 and May’21 respectively.
Why did exports fall m-o-m in July?
As per SteelMint’s assessment, HDGI exports had spurted sharply over the last few months because, as with HRCs, mills had overshot their galvanised steel quotas in both Q1 and Q2 to the European Union countries. The EU export quota for Jan-Mar’21 was 1,98,000 tons and for Apr-Jun’21 was 1,99,000 tons. Indian mills had exhausted their HDGI quota by 184% in Jan-Mar’21 and by 237% in Apr-Jun’21.
However, from July onwards, exports dipped because of a lack of quotas to the EU. It may be mentioned that Belgium, Italy, the United Kingdom, Poland and Spain were the top importers of HDGI from India over Jan-July’21. But the top three saw a m-o-m drop of 53%, 24% and 90% respectively in July over June.
Company wise break-up
Company-wise, JSW Steel was the highest exporter of the material in Jul ’21 at 93622 tonnes, followed by AM/NS India at 67,719 tonnes and Asian Colour Coated Ispat with 45,862 tonnes. Each saw a m-o-m drop of 11%, 30% and 22% respectively.
Outlook
Exports of HDGI may remain muted for the rest of the year since exports to the EU are not likely to pick up in a big way. Whatever bookings happen are likely to be for early next year, SteelMint understands.
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