India: Finished steel exports up 2% m-o-m in Jan'22: JPC

India's finished steel exports stood at 0.814 million tonnes (mnt) in Jan'22, up marginally by 2% against 0.80 mnt a month ago, as per provisional data released by the Joint Plant Committee (JPC). Similarly, on an annualised basis, steel exports surged 56% against 0.52 mnt in Jan'21.

During the first 10 months of the current financial year (Apr'21-Jan'22), finished steel exports saw a significant hike of around 26% to 11.14 mnt compared to 8.84 mnt in the corresponding period last year.

The comeback of the European Union, increase in import volumes from Southeast Asia post-recovery from the outbreak of Covid, along with restocking demand ahead of the Chinese New Year improved Indian steel export volumes.

For instance, about 160,000 tonnes of HRCs were booked by Indian steel producers in January for Feb'22 shipments to Europe, Vietnam, Turkey and Egypt along with improved realisations, SteelMint earlier reported.

Crude steel production slips 1% in Jan'22
Indian mills churned out 10.33 mnt of crude steel in Jan'22, down merely by 1% against 10.44 mnt a month ago. However, the volume stood largely flat against 10.31 mnt produced in Jan'21.

The decline in production is likely because of increased inventories amid subdued demand initially. However, towards mid-Jan demand for steel products improved in the domestic market. For instance, PSU steel major Rashtriya Ispat Nigam Limited (RINL) reported its steel inventory at 0.34 mnt in Dec'21, higher as compared to 0.31 mnt in Nov'21. However, this had declined to 0.27 mnt in Jan'22.

During Apr'21-Jan'22, crude steel production by primary mills jumped 18% to 98.39 mnt versus 83.72 mnt in Apr'20-Jan'21.

Finished steel production at 9.81 mnt in Jan'22
Steel mills produced 9.81 mnt of finished steel in Jan'22, a dip of 1% against 9.95 mnt a month ago. However, on a y-o-y basis the same rose by 1% against 9.70 mnt in Jan'21.

In the last 10 months of the current fiscal year (Apr'21-Jan'22), finished steel production grew 20% to 92.82 mnt in contrast with 77.15 mnt against CPLY.

Increased consumptions in the domestic market as well as globally have reflected in the production volumes of finished steel.