India turns net steel exporter after a gap of 6 years

NEW DELHI (Scrap Monster): India has become a net steel exporter during FY ’14, according to the latest statistics released by the country’s Joint Plant Committee (JPC). It is after a gap of 6 years that the country’s steel exports have exceeded imports. Earlier in 2007-’08, the country had been a net steel exporting nation.

The country’s steel exports during 2013-’14 totaled 5.59 million tons. During the same period, India imported 5.44 MT of steel.India had been a net steel importer for the past six years.

During the last fiscal year (2012-’13), the country’s steel imports totaled 7.9 MT, which exceeded the total steel exports of 5.2 MT. When compared with FY ’13, the country’s exports jumped by 4.1% during current fiscal. At the same time, the steel imports witnessed a huge decline of 31.3% in FY ’14 when compared with the previous fiscal.

According to JPC, the volatility of rupee was the main driving force behind the boost in exports. The slowdown in domestic economy accounted for the huge dip in steel imports into the country. The domestic demand conditions continued to remain weak during the current fiscal. The demand from construction sector and automobile sector remained subdued. JPC notes that the two sectors together account for nearly 75% of the total domestic steel demand in the country.

The weak domestic demand saw many domestic steel producers-both in the private and public sector- to boost overseas shipments. The JPC indicates that the export momentum is likely to continue in 2014-’15 as well.