In 2022, India became the second largest producer of crude steel in the world. As one of the top producers and consumers of steel in the world, India both exports and imports finished steel to a variety of countries. Have a look at the major steel export and import updates that businesses must be aware about:
Steel import updates – Data and figures
India became a net importer for steel in July for the first time in this financial year. The country imported about 5,87,000 tonnes according to a report of the Steel Ministry. This is the fourth time in over a year that India has turned a net importer of steel.
The most imported steel item was non-alloyed steel which witnessed a 63% increase YoY at 411,000 tonnes making up 70% of steel imports. Meanwhile, alloyed steel and stainless steel imports slumped by 8% to 176000 tonnes from 192000 tonnes.
Steel import news
As mentioned, steel imports have seen a significant increase especially from China. This has sparked worries among domestic Indian steel players. The association of steel producers in country, the Indian Steel Association (ISA) is now planning to take this up with the government.
According to steel majors, Chinese imports are impacting domestic steel prices and decreasing the demand for domestically produced steel. According to a statement given by chief marketing officer of ArcelorMittal Nippon Steel India to Business Standard, “Chinese mills are gaining a foothold in our traditional export markets, and they are pushing products into the Indian market at lower prices.”
Steel export updates – Data and figures
India’s steel exports dipped by 27.6% compared to May 2023 and 21.3% compared to June 2022. European markets, primarily Italy, Spain and Belgium are some of the largest buyers of steel from India.
Exports to these three markets were traced at 1.03 million tonnes, a five-year-high for the April–July period of FY24. The exports from these three markets have spiked by over 350% since FY20 when exports were just 0.23 million tonnes.
Non alloyed steel was the most exported commodity from the steel sector. Shipments increased 190% from 156,000 tonnes to 454,000 tonnes. Whereas stainless steel and alloyed steel witnessed a steel fall of 74% from 223000 tonnes to 58000 tonnes.
Steel export news
European Union carbon tax rule is predicted to affect Indian steel exports to the EU nations. The carbon tax rule establishes a price on carbon emitted during the production of carbon-intensive goods that are at risk for carbon leakage such as cement, iron and steel, aluminum, fertilisers, electricity, and hydrogen that are entering the EU. The implementation will begin in October according to news reports on steel export and import.