India: JSPL seeks to cut proportion of exports to China

Jindal Steel & Power is seeking to reduce billet exports to China, shifting its overseas sales efforts to other products and regions, managing director V.R. Sharma told SteelMint.

JSPL exported a total of 312,294 t billet and bloom in May, of which 72% was shipped to China, according to SteelMint data. India's billet and bloom exports had posted a three-fold increase on an m-o-m basis in May after more than doubling on an m-o-m basis in April on the back of robust Chinese demand.

Indian steelmakers are seeking to raise exports as domestic demand has taken a sharp fall due to the economic slowdown caused by coronavirus-related lockdowns. China's economy has recovered swiftly after the coronavirus infections peaked in March which has resulted in higher demand and prices of steel products, such as HRC and billet, leading to more overseas volumes coming into China. But with a billion tonnes of steel capacity, China is not a sustainable import destination and as steel mills swiftly ramp up production, import opportunities may soon fall back to low levels.

JSPL is seeking to export more steel products such as API-grade plates used to make energy pipelines to Middle Eastern countries while also trying to lift overseas sales of structural products, said Sharma.

JSPL is currently offering granulated pig iron (GPI) at around $330/t FoB in export markets while its latest billet export offers are at $395-400/t FoB.