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India’s steel purchase from China touched one of the highest in recent times for April-May, with 0.23 million tonnes (mt) coming in. This is up 62 per cent YoY, per provisional data available with the Union Steel Ministry, and accessed by businessline.
Finished steel shipments from China in April-May of 2022 was 0.14 mt; while that in the same period of 2021 was 0.12 mt. Finished steel include hot rolled and cold rolled coils and strips, other non-alloyed offerings, stainless steel and alloyed-based offerings.
China’s increased production capacity and the downward trend in global steel prices have led to a surge in the influx of lower-priced shipments into India. For instance, while both alloyed and stainless and non-alloyed steel shipments increased for April and May, the YoY rise for non-alloyed offerings (like electrical sheets, galvanised plain sheets, coils, strips, etc) was a sharp 205 per cent at 0.12 mt (0.04 mt). Stainless steel shipments rose just 14 per cent.
Month-wise break-up
According to data available from the Steel Ministry, China emerged as the second largest importer in April with around 0.11 mt of shipments coming in — up 79 per cent YoY. In May, steel shipments rose 50 per cent to 0.12 mt. On a month-on-month basis (May over April), shipments increased 9 per cent.
A comparison of similar months over the last two years show imports were 0.06 mt and 0.08 mt in April and May of 2022; and 0.06 mt and 0.06 mt in April and May of 2021, respectively.
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Per the Ministry report, for April-May 2023, domestic finished steel production was 21.8 mt (up by 11 per cent) and consumption was 20.3 mt (up 8 per cent).
Import trends
The report said Korea is the largest exporter to India, even though shipments from the country remained flat for the period under review. Other major exporters were Japan (up 34 per cent), Vietnam (up 681 per cent) and Taiwan (up 176 per cent).
India was a net exporter, as exports (1.55 mt, flat YoY) outpaced imports (0.9 mt, up 27 per cent YoY).
“Import of finished steel was ₹9,002 crore whereas exports were ₹13,139 crore,” it mentioned.
Volume-wise, cold rolled coils (0.273 mt) was the item most imported, accounting for 30 per cent share.
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