India reduced steel exports by 50% y/y in February 2023

In February 2023, Indian steel enterprises reduced the export of finished steel by 50% compared to February 2022 – to 570 thousand tons. Compared to January 2023, the volume of product exports decreased by 1.1%. SteelMint reports about it.

The reason for the decrease in the export of finished steel from India is a decrease in interest in the purchase of hot-rolled products of Indian origin, since there is competitive steel from the UAE on the market. Buyers try to negotiate lower price levels in the presence of cheaper alternatives. However, Indian steel mills are not looking at reducing the cost of production. The volume of exports to the European Union, the largest consumer of Indian rolled products, continued the upward trend in February.

During the 11 months of the 2022/2023 financial year (April 2022 – February 2023), the volume of finished steel exports from India fell by 52% compared to the same period of the 2021/2022 financial year – to 5.904 million tons. This drop is due to the introduction of the export duty in May 2022.

Crude steel production in India, as of February 2023, amounted to 9.89 million tons, which is 9% less compared to the previous month. In addition, steel output fell by 2.5% year-on-year.

In April 2022 – February 2023, Indian steelmakers increased the production of unrefined steel by 4% compared to the same period of the previous fiscal year – to 113.44 million tons.

The production of finished steel in India during this period increased by 6% y/y – to 109.35 million tons, while in February steelmakers produced 9.87 million tons of finished steel, which is 8% less month-on-month and 3% more y/y.

In February 2023, the consumption of finished steel in India amounted to 10.09 million tons, decreasing by 5% m/m and increased by 11% y/y. For 11 months of the 2022/2023 financial year, the indicator increased by 12% y/y – up to 107.19 million tons.

As GMK Center reported earlier, in 2022, India’s steelmakers cut exports of steel (rolled and semi-finished products) by 43% compared to 2021 – to 10.45 million tons. In December last year, this indicator fell by 40% y/y – to 0.66 million tons.

The country’s steel sector was seriously affected by the introduction of a 15% export duty on finished steel products last May. It was canceled in November 2022, which made it possible to increase the volume of exports the next month.