Indian Steel Exports Plunged by a Third

SEATTLE (Scrap Monster): The steel exports from India recorded sharp decline, mainly on account of weak international demand and tough competition from Chinese steelmakers. However, the robust domestic demand for steel has helped producers to offset the impact of the 33% fall in exports.

The Chinese steel has been flooding international markets including China. The mills have been offering steel products at extremely low prices, thus not allowing other countries to even compete with them. As a result, the Indian steel exports to various destinations including the Middle East and Vietnam recorded notable decline. Incidentally, the monthly steel shipments averaged at 780,000 tonnes during the initial seven-month period this year, compared with the corresponding period a year before.

The imports of Chinese steel by India had hit multi-year high during the June quarter. Also, the finished steel imports by India from China have surged to the highest level in five years during April-July ’23. The country emerged as the second biggest exporter to India.

According to industry experts, the dip in exports are unlikely to squeeze the margins of domestic steelmakers as domestic steel prices continue to remain strong driven by ongoing robust internal demand.