News Global Market India 07 February 2023
Recovery of global steel prices and abolition of 15% export duty boosted export orders from India
In January 2023, India’s steel enterprises increased the export of finished steel by 33% compared to December 2022 – up to 580 thousand tons. However, the export volumes fell by 28% compared to January 2021. SteelMint reports about it.
“Recovery of global steel prices from November 2022 and removal of 15% export duty increased export orders from India,” it said.
During the first 10 months of the 2022/2023 financial year (April 2022 – January 2023), the volume of steel exports from India fell by 52% compared to the same period of the previous financial year – to 5.33 million tons.
The production of unrefined steel in India in January 2023 increased by 1% compared to December 2022 – up to 10.68 million tons. At the same time, the indicator decreased by 2.5% y/y.
“Volumes of steel production at major plants in India showed growth in January 2023. In addition, the SAIL company recorded its best monthly performance in the entire history of the company – 1.72 million tons of steel, 1.8 million tons of pig iron and 1.61 million tons of finished products. The previous record was set in March 2022,” the message says.
In 10 months of the 2022/2023 financial year, steel production in India increased by 4% compared to the same period of the 2021/2022 financial year – up to 103.18 million tons.
The output of finished steel in January increased by 1% m/m and decreased by 3% y/y – to 10.04 million tons. In April-January, the indicator reached 98.6 million tons, which is 5% more y/y.
The consumption of finished steel in India in January 2023 amounted to 10.5 million tons, which is 1% more month-on-month and by 3% y/y. In the 10 months of the 2022/2023 financial year, domestic steel consumption increased by 11% y/y – up to 96.38 million tons.
As GMK Center reported earlier, in 2022, India’s steelmakers cut exports of steel (rolled and semi-finished products) by 43% compared to 2021 – to 10.45 million tons. In December 2022, this indicator fell by 40% y/y – to 0.66 million tons.
The country’s steel sector was seriously affected by the introduction of a 15% export duty on finished steel products last May. It was canceled in November 2022, which made it possible to increase the volume of exports the next month.