SEATTLE (Scrap Monster): The provisional data released by the Indian Steel Ministry suggests notable dip in exports of finished steel during the month of June this year. This is the fourth straight month of decline in finished steel export volumes from the country. The recent imposition of higher export duty, muted demand and competitive pricing offered by Chinese steelmakers are being cited as the primary reasons for the fall in steel exports from the country.
According to data, the country’s finished steel exports totalled 0.64 million tonnes in June 2022. This is significantly down by nearly 53% from the exports which totalled 1.4 million tonnes in the corresponding month a year before. Month-on-month, the exports recorded almost 20% decline. It must be noted that steel exports had totalled 0.80 million tonnes in May this year.
The Ministry projected around 40% dip in finished steel exports during the initial quarter of FY23 to 2.2 million tonnes. The country’s exports had totalled 3.6 million tonnes in the same quarter in FY22.
Meantime, major steelmakers have demanded withdrawal of export duty levied in May, which they cited as one of the key reasons behind the slowdown in exports.