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Indian steel exports for August witnessed a 66 per cent drop, year-on-year (YoY) to 0.45 million tonnes (mt) with weaker orders across key markets in prime categories, and pricier offerings, continuing to be a worry for mills here. Exports in the year ago period was 1.33 mt. However, in a respite for exporters, finished steel exports rose by 20 per cent, over July.
Finished steel includes non-alloyed offerings — the key export categories — and alloyed and stainless steel products.
According to provisional data available with the Steel Ministry, and accessed by BusinessLine, the first five months of the fiscal (April to August) saw exports decline by nearly 53 per cent to 3.02 mt; from 6.4 mt in the year-ago-period.
Non-alloyed steel
India’s steel exports have been declining since the beginning of this fiscal as global recessionary pressures started impacting the commodity market. On top of that, the Centre imposed an export duty May 22 onwards in order to cool off steel prices in the domestic market. It made non-alloyed steel products from the country costlier in the global market.
July was one of the worst months for steel mills as imports were higher than exports. In August, imports were almost the same as the previous month, at 0.4 mt.
“Exports are up month-on-month in August. But, if you see minutely, orders for non-alloyed steel export numbers are still down. So, the concern continues. Key markets in Europe continue to go slow on orders in view of lower demand there and an energy crisis,” an exporter said.
Export decline
The Ministry’s numbers also show that non-alloyed steel exports were down 91 per cent YoY in August, to 0.11 mt. Numbers fell from 1.3 mt that was recorded in the year-ago-period.
On the other hand, alloyed steel and stainless steel numbers — a part of which is outside the duty purview — jumped 328 per cent YoY in August to 0.34 mt. In August last year, exports under category were just 0.08 mt.
So far in the fiscal (April to August), exports across the non-alloyed steel categories were down 64 per cent, YoY, to 2.2. mt; from 6.0 mt.
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