While exports of alloyed steel fell by half, key export offerings of non-alloyed steel experienced their highest-ever sequential growth this fiscal year, reaching 271 per cent over the previous month. However, exports nearly halved (down 54 per cent year-over-year) for the April-December period, according to a steel ministry report. This was due to the global recessionary pressures and the previous impact of duty levy on exporters.

As an anti-inflationary measure, in May a 15 per cent export duty was imposed. Steel exports fell to 4.74 million tonnes (mt) in the first nine months of FY23 from 10.33 mt in the previous fiscal year. According to the report, India exported 442,000 tonnes in December, compared to 338,000 tonnes in November. Despite an increase in imports of 27 per cent and a decrease in exports during the first nine months of FY23, India was a net exporter of steel.

After the announcement of the removal of export duties, sentiments clearly improved. These will take some time to show up in numbers. Europe received more inquiries in December, and deliveries are scheduled for January. Order placements were lower than anticipated due to the approaching holiday season in the Western world, according to a trade source.

In anticipation of better prices in January, Indian producers of hot-rolled coils reportedly withdrew their existing quotes from the market in December.