India sees 11% rise in steel exports in October as imports moderate

New Delhi (The Uttam Hindu): India’s steel exports saw a notable uptick in October, rising 11% sequentially to 0.44 million tonnes (mt), compared to 0.4 mt in September. This marks the first increase in exports this fiscal year. On a year-on-year basis, exports surged 51%, up from 0.29 mt in October last year. Meanwhile, imports moderated for the first time in the current fiscal, falling by 4% to 0.98 mt in October, as India enforced stricter import norms, including quality checks on non-BIS (Bureau of Indian Standards) compliant products. September saw the highest import levels of the year, with imports nearing 1.1 mt.

Despite the decline in October imports, they remain elevated on a year-on-year comparison, with a 34% increase from last year. For the April-October period, India was a net importer of steel, with imports reaching 5.72 mt, up 40% from the previous year, compared to exports of 2.75 mt. The moderation in imports is attributed to India’s tightening of quality control regulations on steel imports, especially non-BIS compliant products. Additionally, a Chinese stimulus package has helped stabilize steel prices, providing some relief in October. However, margins for Indian steelmakers remain under pressure, particularly due to ongoing challenges in the domestic market. Chinese steel prices have been quoted at a premium of ₹3,000 per tonne in Mumbai, compared to domestic prices. Despite this, major Indian steel producers like SAIL and JSW Steel have reported some improvement in domestic steel prices. SAIL's long products saw a 2% price rise in October, reaching ₹53,000 per tonne, while flat products continued to face price challenges, declining by 4% to ₹47,000 per tonne.

JSW Steel’s CEO Jayant Acharya noted an improvement in the market after a sharp price slump in September, with demand from institutional customers and restocking efforts driving positive pricing trends. Retail demand, however, was affected by import sentiment, but there are expectations for retail restocking to boost demand in the coming months. India's finished steel production for the April-October period stood at 82.65 mt, reflecting a 4.4% year-on-year increase. Over 86% of this production came from the private sector. Steel consumption also saw strong growth, rising by 13% year-on-year, signaling robust domestic demand. While the steel market is seeing some recovery, particularly in exports and production, challenges remain, especially in pricing and margins for domestic producers. However, the industry expects continued improvements as the fiscal year progresses.