As post-duty prices pinch and seasonal demand weakness kicks in
Key export markets
for Indian steel-makers — which include European nations like Italy and
Belgium, West Asian ones like UAE and Turkey and Asian nations like Nepal and
Vietnam — placed lesser orders with mills herebetween the April and July period
of the fiscal. They were down by 23 to 50 percent.
The fall came as
Indian offerings turned costlier — post imposition of duty from May 22 onwards
— over competing countries like China.Seasonal weakness and recessionary
pressures also dragged down the steel demand
Finished steel
(non-alloyed and alloyed) exports for the 4-month period was 2.57 million
tonnes (mt), which was down 49 per cent Y-o-Y. Exports in the corresponding
period last year was 5.07 mt. Non flat product exports were down by 61 per cent
Y-o-Y to 0.41 mt, while flat product — the key offerings — dropped 46 per cent
to 2.16 mt.
Data from different
ports correspond the fall in export numbers. Shipments were down between 9 per
cent and 60 per cent. For instance, from Mumbai, the fall was 9 per cent Y-o-Y
for April - July period (at 0.37 mt); while in case of Magdalla port in
Gujarat, the fall was 60 per cent with 0.27 mt of cargo being shipped. Paradeep
saw a 53 per cent fall and 0.33 mt was shipped, while Goa saw 0.33 mt being
shipped, a fall of 53 per cent, Y-o-Y. Dhamra saw a 37 per cent drop to 0.25 mt
being shipped.
Market wise fall
As per the data
available with the Steel Ministry and accessed by BusinessLine,
Italy and Belgium booked cargoes to the tune of 0.47 mt and 0.29 mt, down 40
per cent and 59 per cent, respectively for the period under review. Around
71,000 tonnes and 25,000 tonnes of cargo was shipped in July, lower than
previous years.
For UAE, Turkey and
Saudi Arabia, the exports in July was 61,000 tonne, 3,000 tonne and 24,000
tonne respectively. And in the April to July period, exports to UAE and Turkey
fell 23.5 per cent and 43.9 per cent respectively, as cargo shipped were 0.25
mt and 0.19 mt.
In case of Nepal,
the export for July was 36,000 tonne; but drop for April to July period was 32
per cent with 0.17 mt being sent to the neighbouring country. In case of
Vietnam, another key export market, some 17,000 tonnes were sent in July.
Semis & Alloys
According to the
Ministry data, semis (semi