Steel imports to India jumped by 93% in November

Finished steel imports to India rose 93% in November, making the country a net importer for the second consecutive month, while exports hovered around a three-year low.

Last month's imports of 600,300 t were the highest since October 2019, while finished steel imports from April to November rose 23% year-over-year to 3.75 million t, preliminary data from the United Factory Committee (JPC) of the Ministry of Steel. Finished steel includes alloy and unalloyed steel.

According to Argus calculations, hot rolled coil (HRC) imports in November were 62,700 tons from Russia, 11,800 tons from Japan and 600 tons from China. Imports of hot-rolled coil in April-November from Russia amounted to 158.4 thousand tons, from Japan - 39.6 thousand tons, from Vietnam - 21.1 thousand tons and from China - 19.3 thousand tons, according to JPC data .

“Given limited growth opportunities in the world’s key steel production centers in China, Japan, South Korea, the CIS, Europe and the United States, finished steel exports to India are steadily increasing… global steel trade flows, especially from FTA countries (Japan/South Korea), Russia and China could be diverted in large volumes to India, keeping imports at an elevated level in the 2023-2024 financial year,” the rating agency ICRA notes.

Finished steel exports fell 53% year-over-year in November to 338,000 tons, the lowest level since June 2019, according to JPC. In November, Vietnam was the top finished steel export destination with 59,900 tons, followed by Nepal with 49,200 tons and Belgium with 18,000 tons, according to Argus estimates.

On November 19, the Indian government lifted the 15% export duty on steel products, but weakening international markets failed to significantly revive supplies.

“While India’s finished steel exports are expected to increase gradually from their November lows following the removal of the export duty, they are unlikely to return to levels seen in FY21, FY22 and even FY2024,” it said. in the ICRA message.

Finished steel production last month rose 6.4% yoy but fell 1.6% yoy to 9.83 million tonnes, while consumption increased 12% yoy year, but decreased by 5.3% compared to the previous year to 9.57 million tons.

Steel production in November increased by 5.7% compared to the same period last year and did not change compared to the previous month and amounted to 10.4 million tons. Pig iron production increased by 9.4% year-on-year to 6.74 million tons, while pig iron production increased by 5.2% to 451,000 tons.