New Delhi, December 30 Indian steel exports dropped significantly across key markets, including its largest one, Vietnam, and Belgium – amongst the major European ones – for the April to November period, indicative of the global recessionary trends and price pressures of Indian offerings.

Vietnam saw a 62 per cent dip in export to 6,23,300 tonnes for the period under review. Shipments in the year-ago-period were 12,86,000 tonnes, data accessed by businessline, from the Steel Ministry, said.

Belgium, which witnessed the highest fall in orders percentage wise, saw shipments dip to 3,48,000 tonnes, down 52 per cent YoY. Exports to the European nation were 9,14,000 tonnes, a year back.

Other big markets that saw a downward movement in ordersinclude Italy – drop of 45 per cent to 533,500 tonnes; UAE – fall of 42 per cent to 472,300 tonnes; and Nepal – lower by 37 per cent to 340,000 tonnes.

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For the eight-month period, India’s steel exports more than halved, by 55 per cent, to 4.3 million tonnes (mt). Exports in the year-ago-period was 9.53 mt.

Global slowdown

According to the Ministry report, global steel prices “continued to remain under pressure from many sides in November 2022”, and it stated factors like Russia-Ukraine conflict, developments in the Chinese market which include a fresh spurt in Covid cases and its sinking property market leading to depressed sentiments.

On top of this there are concerns about rising energy costs in Europe “where demand conditions remain weak to modest”. As a result, most participants adopting a wait-and-watch outlook – for markets, the report observes.

“Moreover, Indian offerings were costlier in comparison to global prices which slowed down orders further,” an exporter said. Export duty levied by India, which was seen as a major reason for offerings from the country turning costlier, was removed in November 19 onwards.

Overall exports down

Flat product shipments – which account of 86 per of India’s exports – halved to 3.7 mt for the period under review as against 7.5 mt in the year-ago period.

On the other hand, non-flats (also called long products) export dropped by 70 per cent to 6,18,000 tonnes (as against 2.05 mt). Longs account for 14 per cent of export orders of Indian mills.

For the period, hot rolled coil (HRC) / hot rolled strip was the highest exported item – at 2.3 mt, accounting for 53 per cent of the total exports under the finished steel category.

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