India moves from being a net exporter to a net importer of steel in Q1 FY25

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India moves from being a net exporter to a net importer of steel in Q1 FY25

Ferrous 15 Jul 2024 12:26 PM IST The Hindu BusinessLine

India was a net importer of steel in Q1FY25 (April-June), with shipments exceeding exports by 0.6 million tonnes. Throughout the first three months of the fiscal year, finished steel exports fell steadily due to low global demand and competition from China, while imports increased continuously. India was a net exporter of 0.7 MT of steel the previous year.

According to the Steel Ministry, Q1FY25 completed steel imports were 1.9 MT, increasing 30% year over year from 1.4 MT the previous year. Exports were 1.3 MT, down 38% year on year, compared to 2.1 MT the previous year. Steel imports in June totalled 0.55 MT, a 24% decrease from May's 0.72 MT. However, imports grew 14% from the previous year's level of 0.5MT. Last month's export of 0.34 MT was 20% less than the 0.43 MT recorded in May and 32% less than the 0.5 MT exported in June last year.

According to consultancy firm BigMint, Indian CRC bids to Europe hover at about $680-690 per tonne (from India's East Coast), while HRC offers are expected to resume soon. Asian and West Asian market offers remain modest, with Chinese price quotations in the $560/tonne range lower than those of Indian players.

“Imports in June were lower than in May, which seems to be a good sign. But the bigger concern continues to be depressed exports. Global economic headwinds and cheaper Chinese products flooding key markets continue to impact orders.” “We have been in touch with some concerned ministries on rising steel imports, especially from China, and those shipments of China being routed through Vietnam,” a Steel Ministry official said.

As per BigMint, Indian flat steel producers reduced the prices of hot-rolled coils (HRCs) by around ₹1,000-1,750 per tonne starting in July. The price reduction for cold-rolled coils (CRCs) is around ₹1,000-1,500 per tonne. For the period of April-June, steel production (finished) registered a 7% y-o-y increase. Production reached 35.77 MT compared to 33.427 MT in the same period of the previous year.

On a sequential basis, finished steel production increased by 1.2% in June to 12.1 MT against 11.923 MT in May. The y-o-y growth was over 9%, surpassing 11.1 MT in June 2023. Finished steel consumption for Q1FY25 stood at around 35.4 MT, up 15% y-o-y. It stood at 30.833 MT in the year-ago period. June finished steel consumption remained at May levels of 12 MT. Consumption grew y-o-y by 19% over last year’s June month, when it was around 10 MT.

“Domestic steel demand continues to be good, and consumption is on the higher side, too. But cheap imports remain a concern and could have a negative impact on the prices here or market dynamics,” a market participant said.

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India moves from being a net exporter to a net importer of steel in Q1 FY25

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