Indian steel exports will remain low during the fourth quarter of the fiscal year 2020-21 due to continuing strong domestic demand and robust realizations from local sales, a report of financial services firm India Ratings (Ind-Ra) said on Thursday, March 4.
Finished steel exports from India in January this year totaled 580,000 mt, down six percent on month-on-month basis and down 16 percent year on year, with producers focusing on domestic sales. Conversely, finished steel imports two percent in January month on month and 8.3 percent higher on year-on-year basis at 520,000 mt, the Ind-Ra report said.
“The reduction of import duty to 7.5 percent from 10-12.5 percent on all finished alloy, non-alloy and semis should have a stabilizing impact on domestic supplies and steel prices in the near term,” the report said.
However, there is unlikely to be a spurt in imports due to domestic prices still being at a discount to the landed price to imports from China and the latter having a limited steel surplus, the report said.
It is observed that Chinese crude steel production in January this year was estimated at 90.2 million mt, 1.12 percent lower month on month but still on a par with the January 2020 level.
Indian crude steel production in January this year has been estimated at 10 million mt, two percent higher month on month and seven percent higher year on year, Ind-Ra said.