Indian Finished Steel Exports Surge in H1FY’20- Govt Data

As per the recent data released by the Joint Plant Committee (JPC ), India's finished steel exports (non-alloy steel + alloy and stainless steel) stood at 3.936 MnT in H1FY’20 (Apr-Sep), surged by 22% in comparison with 3.232 MnT in H1FY’19. In the backdrop of low buying activities and falling, steel prices in domestic market Indian steel mills turned their attention to exports to tide over dull demand in the domestic market.

Also on a monthly basis, the nation’s finished steel export volumes increased marginally by 4% to 1.019 MnT in Sep’19 as compared to 0.983 MnT in the previous month.

On a yearly premise, India's finished steel exports shoot up by 73% in Sep’19 against 0.590 MnT in the same month of the previous year.

India finished steel imports remain stable in H1FY’20- India's finished steel exports remained largely stable in H1FY'20 at 4.018 MnT which was 4.001 MnT in the same period of FY'19.

The nation’s finished steel imports have slashed by 34% M-o-M to 0.565 MnT in Sep19 in comparison with 0.856 MnT in the prior month.

Ongoing discussions of imposing safeguard on imports, bearish sentiments in the domestic market amid continuous fall in steel prices in-turn resulted in a reduction in imports as domestic prices turned lucrative. Also, a slump in demand from major steel consuming sectors owing to the seasonal disruptions caused by the monsoon can be attributed to lower imports in Sep’19.

Meanwhile, on a yearly basis, import volumes have tumbled by 16% in Sep’19 over 0.675 MnT in Sep’18.

India’s crude steel output inch up by 1% in H1FY’20- During H1FY'20 the nation's crude steel production inch up by 1% to 54.591 MnT in H1FY20 comparison with 53.910 MnT in H1FY'19.

India's crude steel production tumbled by 5% M-o-M to 8.417 MnT in Sep’19 as compared to 8.880 MnT in the preceding month.

Slow demand and falling steel prices in both domestic and global markets propelled major Indian steel manufacturers to cut down their production amid higher inventories with mills.

However, on a yearly basis, the decline in production accounted for 5% in Sep’19 as against 8.819 MnT in the Sep’18.

India's finished steel consumption increased by 5% in H1FY'20- India's finished steel consumption witnessed an increase of 5% in H1FY'20 to 50.87 MnT, which was 48.447 MnT in H1FY'19.

However, on a monthly premise, the same declined by 5% to 8.346 MnT in Sep’19 over 8.810 MnT in the previous month.

Meanwhile, the nation's steel consumption remained stable in Sept'19 as against 8.367 MnT in Sep18.

Source: Govt Data, SteelMint Research