India: Bulk HRC export volumes drop 33% m-o-m in Sept'21

Indian bulk HRC export shipments stood at 738,793 tonnes (t) in Sept'21, plunging 33% as against 1,102,204 t a month ago, as per data maintained with SteelMint. However, on an annualised basis, export shipments jumped 39% against 531,641 t in Sept'20.

SteelMint analyses reasons behind the fall in exports m-o-m

1. Exhausted EU quotas: Indian mills have exhausted their European quotas for the entire year, which SteelMint had earlier reported on.

For fresh bookings, European buyers will have to pay an additional duty of 25% which they are not willing to, . Therefore, exports to EU are less likely to happen until next year.

2. Maintenance shutdown at mills: JSW Steel, a leading steel manufacturer, reported its capacity utilisation unchanged q-o-q at 91% in Q2FY'22, due to planned shutdowns taken by the mill at its Vijayanagar and Salem works. This, in turn, might result in lower export allocations by the mill.

Vietnam remains leading importer, but volumes drop m-o-m

HRC import volumes by Vietnam fell 20% on the month because the country was under Covid lockdown coupled with monsoon-led disruptions. The import volumes stood at 190,599 t in September as against 238,007 t in August.

Export volumes to other nations such as Italy stood at 108,385 t (down 55%), Belgium at 30,000 t (down 73%), Turkey 53,751 t (down 53%).

Meanwhile, imports by the UAE moved up 4% to 156,917 t in September compared to 150,741 t in August.

Dhamra Port shipped maximum volumes in Sept

Dhamra Port, located in Bhadrak district, Odisha, shipped maximum volumes of HRCs in September at 171,000 t, up 4% as against 149,820 t in August.

Export volumes shipped from Mormugao stood at 108,817 (down 45%), Hazira at 119,500 t (down 44%) and Paradip was at 58,896 t (down 51%).

Tata Steel leading exporter in Sept

Tata Steel, a prominent Indian private steel major, secured the leading position with export volumes of HRCs at 250,876 t in September, up 4% as against 242,143 t in August.

HRC exports from JSW Steel and ArcelorMittal/Nippon Steel (AM/NS) in September fell to 192,619 t and 29,500 t respectively. On the other hand, export volumes by Jindal Steel and Power Ltd (JSPL) jumped to 87,840 t in September in comparison with 29,250 t in August.

Outlook

Indian mills are keeping a track of the overseas market and have been consistent in quoting offers for Dec'21 shipments amid the demand-supply gap arising out of limited export allocations from major countries like China.