India Still A Net Importer Of Steel, Export Pressure Continues
In May, finished steel imports were recorded at 0.55 mt, a 13 per cent year-on-year increase from 0.49 mt
India remains a net importer of steel as of May, with imports surpassing exports by 0.12 million tonnes (mt) and totaling 0.20 mt for the first two months of the fiscal year. This marks a shift from the same period last year when India was a net exporter, according to a report from the Ministry of Steel.
In May, finished steel imports were recorded at 0.55 mt, a 13 per cent year-on-year increase from 0.49 mt. However, sequentially, imports declined by 5 per cent from April's 0.59 mt. For April-May FY25, imports rose 20 per cent year-on-year to 1.14 mt.
Conversely, finished steel exports in May stood at 0.43 mt, a 38 per cent decrease year-on-year. For the first two months, exports totaled 0.94 mt, down 40 per cent year-on-year. Sequentially, exports dropped 15 per cent from April's 0.51 mt. In May 2023, exports were 0.70 mt.
“The positive takeaway is that imports have seen some moderation month-on-month and domestic demand has remained strong. However, there is continued pressure on exports,” said a Ministry official.
India’s tier-1 steel mills have reportedly paused their export offers to focus on the domestic market. Domestic steel consumption grew nearly 11 per cent year-on-year, reaching 23.035 mt for April and May, up from 20.85 mt in the same period last year, as per the Ministry report.
Some mills have announced a price increase of Rs 500 - 1,100 per tonne effective 1 June. Benchmark hot-rolled coil (HRC) export offers from Indian mills stood at around USD 275 per tonne to Europe following the European Commission's 15 per cent import cap on HRC exceeding existing quotas.
“Vietnamese buyers are cautious, and the European market remains sluggish despite import restrictions,” consultancy firm BigMint noted in a report.
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