In a major setback, India has turned into a net importer of steel for the April-November period (eight months of the fiscal) due to a continued fall in export orders on account of global recessionary pressures, inability to tap into new markets, and stiff competition from lower-priced offerings coming in from China and Vietnam, data accessed by businessline from the Union Steel Ministry has showed. 

Imports at 4.3 million tonnes (mt) exceeded exports, which stood 4.0 mt for the eight month period, by 0.3 mt. 

This marks a drastic change in India’s competitive landscape, where the second largest producer of crude steel which became a net exporter — seen as a major achievement — now turns back to be a net importer. 

Finished steel include non-alloyed, alloyed and stainless steel offerings. 

Fall in exports on a yearly basis in November is a high 30 per cent; which is now made up with an equivalent rise in imports of 30 per cent, Ministry data show. In November 2023, imports stood at 0.78 mt, up from 0.6 mt in the year-ago-period. Exports on the other hand dropped to 0.23 mt from 0.39 mt in the year-ago-period. 

On a sequential basis, exports fell by a high 20 per cent; against which imports increased 37 per cent. 

Segment-wise patterns 

Non-alloyed steel — the key export offering — that include hot-rolled coils (HRCs) and strips, among others, increased closer to 46 per cent on a year-on-year (y-o-y) basis for 8M FY24 (April-November) to 3.5 mt (2.4 mt), but stainless and alloyed steel exports ceded space to price differences with China in the global market. Stainless steel exports fell 74 per cent y-o-y to 0.47 mt.

On the import front, non-alloyed steel shipments coming in rose 42 per cent YoY to 3.5 mt; while stainless steel and alloy steel offerings dropped by 26 per cent to 1.2 mt. 

According to an exporter, imports going up has been the major concern across the primary steel mills.

“Export numbers are better in the non-alloyed steel segment as last year India had a duty levy which dragged down outbound shipments. This time, the increased quota by European nations and some good demand on April-June period has boosted numbers. But taking out the low base effect, export market remains depressed. Price completion with China is high and mills withdrew new export offers post September since they couldn’t compete on international price front (with China). There was practically no offer in November, except some in EU,” the exporter explained. 

Sources said, prices in China are witnessing some stabilisation as the scheduled production optimisation and cuts start playing out there. 

“It’s a keenly watched situation now,” a Ministry official said. 

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