India's finished steel export surges by 29% in FY '21-Govt. data

Indian finished steel export was recorded at 10.785 mn t in FY '21, up by 29% against 8.355 mn t in FY '20 according to provisional data released by JPC (Joint Plant Committee). Thus, India was a net exporter of finished steel in Apr-Mar '21.

Meanwhile, on a monthly basis, India's finished steel exports stood at 1.293 mn t in Mar '21, reporting a considerable increase of 97% against 0.655 mn t in Feb '21. Furthermore, exports went up by a whopping 126% in contrast with 0.573 mn t in  Mar '20.

Mills exported significant quantities of HRC due to following reasons-

1.Mills focused on export opportunities amid lockdown-Major Indian steel mills have aggressively exported HRC to Vietnam, China, and UAE due to the announced lockdown in India during the pandemic. Mills were dependent on the exports to stay afloat on mute domestic demand.

2.Higher price realizations-Indian steel mills are offering around $900/t CFR Vietnam and around $1000/t CFR Antwerp. Offers are expected to increase further on changing international market situation. Thus, higher price realization in exports over domestic prices resulted in a surge in exports volumes.

3.Vietnam importers preferring Indian origin HRC-Due to continued uncertainties on Chinese export rebate cuts likely to be announced on the 10th of Apr '21, Vietnam importers are preferring Indian origin HRC to avoid the risk of losses. This, in turn, gave a boost to HRC exports from India.

Finished steel imports slumped by 30% in FY '21

In Apr-Mar FY '21, India's finished steel imports slumped by 30% yearly to 4.753 mn t in comparison with 6.768 mn t in the same time of the previous year.

The nation's finished steel imports reported a decline by 9% m-o-m at 0.501 mn t against 0.460 mn t in Feb '21. Higher steel prices in the global market made imports less lucrative.

However, the same surged by 33% y-o-y in comparison with 0.376 mn t in the previous year.

Crude steel output dropped by 6% in FY '21

During Apr-Mar FY '21, crude steel output summed up to 102.438 mn t, down by 6% from 109.137 mn t in the previous fiscal.

Reduced capacity utilization during the peak of lockdown period of Apr-Jul '20 and further extending until Sep '21 due to restricted number of employees as per COVID-19 containment weighed on the output volumes.

Indian crude steel output dropped by 6% to 9.656 mn t in Mar '21 as compared with 9.146 mn t in Feb '21.

However, the production increased by 19% y-o-y basis against 8.094 mn t in Mar '20.

Finished steel consumption declined by 7% in FY '21

The Indian domestic steel consumption totalled 93.429 mn t in FY '21, down by 7% from 100.171 mn t in the corresponding period of FY '20.

The adverse impact of the COVID-19 pandemic on the domestic demand across many major steel-consuming sectors led to a fall in annual consumption volumes.

In Mar '21, finished steel consumption was registered at 8.736 mn t, dropping by 6% m-o-m against 9.266 mn t in Feb '21.

Meanwhile the same reported an increase of 41% annually against 6.212 mn t in Mar '20. The surge in personal vehicle sales due to the increased need for personal mobility and increased government investment in the construction and infrastructure sector since Jul '20 has softened the blow a bit.