Europe become top buyer of Indian Steel post-covid
05 Sep 2023 CW Team
Export Trends
On a year-on-year basis, exports to these key European countries have seen a 14 per cent increase, rising from 0.9 million tonnes in the previous period. Italy, Indian steel mills’ largest export market, received 0.6 million tonnes, reflecting a 26 per cent YoY increase. Spain, the second-largest market, imported 0.24 million tonnes, marking an 87 per cent increase. Meanwhile, Belgium received 0.2 million tonnes, experiencing a 32 per cent decline for the April–July period of FY24.
The most exported item was hot rolled coil or strips, accounting for 39 per cent of the total finished steel exports.
Other Export Markets
Apart from Europe, the UAE and Nepal also featured as significant export destinations. Exports to the UAE dropped 23 per cent YoY to 0.19 million tonnes, while shipments to Nepal increased by 30 per cent, reaching 0.22 million tonnes during the same period.
According to the Steel Ministry report, "The import of total finished steel was valued at Rs 192 billion ($2,336 million), whereas the export of total finished steel was valued at Rs 215.47 billion ($2,621 million). Overall, the trade surplus (total finished steel) stood at Rs 23.47 billion during April-July 2023 (provisional)."
Rising Imports
Data highlights that Vietnam, previously one of the largest buyers of Indian steel, has now transitioned into a key seller. Imports from Vietnam, among the top five sellers, surged by a staggering 860 per cent YoY to 0.17 million tonnes. In the corresponding period a year ago, India received only 17,000 tonnes of steel imports from Vietnam.
Other major steel sellers to India included Korea at 0.69 million tonnes (down 4 per cent), China at 0.6 million tonnes (up 62 per cent), and Japan at 0.26 million tonnes (up 47 per cent).
China notably emerged as the second-largest steel seller to India, with finished steel imports reaching a five-year high in the first four months of the fiscal year. Steel shipments from China saw a 23 per cent YoY increase to 2 million tonnes, primarily due to the attraction of cheaper imports from China, which were priced $40 to $60 per tonne lower.