India reduced the export of rolled steel by 55% y/y in April-November 2022

For 8 months of the 2022-2003 financial year (April-November), India reduced its exports of rolled steel by 55% y/y – to 4.3 million tons. The Economic Times reports about it with the reference to Reuters.

The reasons for the significant drop in exports were the slowdown in global demand and export duties on some steel products. In November, the Indian government canceled them, but industry representatives note that it will be difficult for companies to return to their traditional markets, including Europe.

At the same time, in April-November 2022, according to the data of the country’s government, India increased imports of rolled steel by 22.5% compared to the same period last year – up to 3.8 million tons. Steel production increased in this period by 5.6% y/y – up to 81.9 million tons, production of rolled products – by 6.4% y/y, up to 77.7 million tons.

Steel consumption in the country increased by 12% – up to 75.3 million tons in 8 months of the 2022-2003 fiscal year.

As GMK Center reported earlier, the Government of India is extending the duty and tax exemption on exported products (RoDTEP) scheme on steel from December 15, 2022. The scheme includes iron and steel products, in particular, pipes and construction materials for railways. The RoDTEP, which provides for refund of embedded central and local duties and taxes, will apply to these exports until September 30, 2023.

Also, in April-October 2022, India increased the import of finished steel from Russia by 4.4 times compared to the same period in 2021 – up to 149 thousand tons. Russia accounts for only about 5% of India’s total steel imports, but it is among the top five exporters.