Steel trade deficit widens to over ₹11,500 crore as India continues to be net importer for April - Jan period

As imports from China continued to soar, up 80% or more on a year-over-year basis, India's steel trade imbalance extended to over ₹11,500 crore for the April–January period, up 30% in a one-month period and 15% on a y-o-y basis, according to a Steel Ministry report seen by a media source.

The country was a net importer of steel for the period under review with 6.8 MT (up 35%) coming in, as against export which stood at 5.5 MT (up 3.6%).

As per the report, import of total finished steel was valued at ₹56,461 crores ($6,822 million) whereas export of total finished steel was valued at ₹44,898 crores ($5,425 million) for the April to January (10M FY24) period. In comparison, the trade deficit for nine months (April – Dec) stood at ₹8,888 crore, with imports being valued at ₹48,027 crore, whereas exports stood at ₹39,139 crore.

In the year ago period (10-Months FY23), India, despite being a net steel exporter, reported a trade deficit of ₹10,071 crore. Imports stood at ₹54,534 crore, whereas exports were valued at ₹44,463 crore.

China’s Growing Dominance

“Volume-wise hot rolled coil / strip at 2.9 MT (up 72% y-o-y) was the most imported item, accounting for 43% of the total share of finished steed,” the Ministry report said adding that China dominated shipments to India with 32% market share.

The Chinese are now the highest seller of steel to India at 2.18 MT and valued at $2308 million (up 30% y-o-y), replacing traditional ones like Korea, details from a Steel Ministry report, reviewed by a media source, show.

Incidentally, Chinese imports surged across categories like hot rolled coils and strips – up 27% y-o-y; cold rolled coil and strips increased 150% y-o-y; galvanised plates and sheets saw a 6% rise, apart from other categories like steel plates which is a recent addition to the import list.

In some categories like electrical sheets, galvanised plates and sheets and steel plates China displaced traditional markets like Japan asserting their price dominance there.

Export Growth

On the other hand, Europe continued to be a major buyer of Indian steel with Italy, Belgium and Spain being the three key markets for 10 Months FY24.

Exports to Italy stood at 1,2 MT, up 68%; followed by Belgium at 0.6 MT, up 25% y-o-y. Spain saw a 96% increase in exports, the highest in percentage terms but volumes remained lower than its European counterparts at 0.47 MT.

The UAE, another key market, saw shipments fall by 37% y-o-y to 0.38 MT.

“Volume-wise hot rolled coils and strip at 2.06 MT was the most exported item, accounting for 37% of the total finished steel (shipments),” the Ministry report mentioned.