Finished steel exports up 9% y-o-y in Q1 FY '22

India's finished steel export volumes moved up by 9% in Apr-Jun '21 (Q1) to 3.557 million tonnes (mn t), SteelMint learned from the recent Joint Plant Committee (JPC) report.

The volumes stood at 3.265 mn t in the preceding fiscal. An increase in export allocations owing to the stringent lockdown announced in the (Apr-Jun) Q1 FY '21 had boosted the volumes then. This trend has continued into the current fiscal.

Along side this, increased exports to the European Union and Middle East in the past couple of months have boosted the export volumes further in Q1 FY '22.

Meanwhile, on a monthly basis, finished steel exports were recorded at 1.368 mn t in Jun '21, a growth of 11% against 1.237 mn t in Jun '21, according to provisional data released by JPC.

Finished steel imports decline 5% in Q1

In Q1 FY '22, finished steel imports dropped to 1.157 mn t, down by 5% in comparison to 1.212 mn t in CPLY.

Higher global prices in the first two months and low demand for imported materials amid MIPs in India kept weighing on the import volumes in Q1 FY '22. However, the same increased by 2% on the month to 0.401 mn t in Jun '21.

Crude steel output spikes by 61% in Q1

The aggregated volume of crude steel output has been recorded at 27.724 mn t in Q1 of the current fiscal. Last year's volumes stood around 17.263 mn t.

The average capacity utilisation rate of steel manufacturers has improved to 90-95% in the current fiscal despite the second wave of Covid-19. In FY '21, stringent lockdown and exodus of migrant labour during the Apr-Jun period had led to a steep 25% decline in capacity utilisation of mills.

During Jun '21, crude steel output was 9.24 mn t, marginally up by 1% from 9.20 mn t in May '21.

Finished steel consumption soars 103% in Q1

The volume of finished steel consumption in the country was up by a significant 103% in Q1 FY '22 at 24.847 mn t in contrast with the preceding fiscal’s 12.235 mn t.

The complete lockdown scenario in FY '21 had kept finished steel demand from major downstream industries and end-consumers down. However, the expedited vaccine drives and sporadic lockdowns in FY '22 had kept market activities like construction and infrastructure running. Other industries registering demand were oil and gas and automobiles.

Consumption volume for Jun '21 was recorded at 8.159 mn t, which was largely stable against 8.130 mn t in May '21.

Way ahead

A huge scope for growth is offered by India’s comparatively low per capita steel consumption and its expected rise due to increased infrastructure construction, green energy projects, and thriving railways sectors.

Steel demand might grow by 7.2% in FY21-22 according to the Indian Steel Association (ISA).