SEATTLE (Scrap Monster): According to trade sources, the Indian steel mills are seen facing slowdown in exports of steel products to countries in the European region. The surge in prices and exhaustion of quota are being cited as the primary reasons behind the slowdown. Traditionally, European markets have served as one of the key export destinations for steel mills in the country.
The mills have reportedly exhausted their export quota for Apr-June quarter for several downstream products including cold rolled coils, galvanized and color coated. Also, the mills are nearing quota exhaustion for other categories of products such as hot rolled coils and rebars. In contrast, other countries have failed to meet their quota volumes for the quarter, data indicates.
Commenting on the development, VR Sharma, Managing Director, Jindal Steel and Power Ltd (JSPL) noted that talks are in progress to increase the quota and a likely announcement is expected by this month end. The export bookings to EU markets by Indian steelmakers have remained active since mid-January this year, he added.
The steel exports from India filled in the gap created by restriction of trade ties by several European countries with Russia and the subsequent ban by the European Commission on key goods in the iron and steel sector from Russia.