India: JSPL Export Bookings till June Around 500,000 MT
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Moments of crises throw up challenges as well as opportunities. At a time when domestic demand has dried up, integrated steel producers are eyeing the export markets to shore up earnings. Jindal Steel & Power Limited (JSPL) is leading the pack with export bookings of 500,000 MT till June-end. Total exports by JSPL in April'20 were over 240,000 MT.
Exports Soaring....
Overseas demand has been inching up steadily as Chinese appetite for Indian semis spiralled with resumption of manufacturing activity in China following the lockdown triggered by Covid-19. The percentage of semis in total export bookings by JSPL till June'20 is around 70% while the rest comprises finished products.
"Total exports in May'20 would be over 200,000 MT," VR Sharma, Managing Director, JSPL, told SteelMint. "Percentage of semis in total exports would be around 70%. Exports would comprise around 62% of total production by the company this month. This is a substantial increase in terms of CPLY," he informed.
JSPL's exports destinations are Germany, Spain, Denmark, Italy, France, Canada, Saudi Arabia, Bahrain, UAE, China, Philippines and Indonesia.
China's demand for Indian semis should continue to be robust for at least six more months due to gradual ramp up of BF capacity in China, cheaper imports compared to domestic steel and the need to conserve raw materials for steady ramp up in manufacturing activity. This presents a "huge opportunity for Indian exporters," said Sharma.
... And Prices Too
Commenting on exports prices, Sharma said: "In the last three days due to an increase in scrap and crude oil prices the export prices have shot up. Recent bookings are at USD 385/MT CFR South East Asia. We are expecting prices to touch USD 400/MT soon."
Production of crude steel by JSPL was recorded at 550,000 MT in April and a similar volume is expected in May, informed Sharma. The targeted production volume in FY21 is 8 MnT -- substantially higher than 6.20 MnT in FY20.
~ By Nirmalya Deb
