Indian steel producers became net exporters to China in the April-August period this year for the first time in several years, according to a report by Crisil Research.
The Crisil report said that, with 69 percent of semis and 28 percent of finished steel out of total exports shipped to China during the period, India became a net exporter to China with outward shipments to China exceeding inward shipments from that country.
Primary Indian steel producers exported about 60-80 percent of their total production in the April-August period to various destinations with the highest volumes shipped to China.
The rise in exports was highest in June, up 400 percent, but subsequently declined from this peak owing to the easing of the national lockdown and some revival in economic activities and the revival in domestic steel demand, Crisil said.
For China, supply disruptions and elevated global iron ore prices led to higher steel imports in these months.
Global steel prices fell to a low of $409/mt in April, the lowest since October 2016 given weak demand and limited export opportunities. But the demand recovery in China especially in the current quarter helped a nine percent month-on-month rise in steel prices to $502/mt in August, the Crisil report said.
While global steel prices may see a fall of 3-5 percent in the current calendar year, Indian domestic prices may decline by only 1-2 percent, also given that antidumping duties are in place, the report said.