Indian bulk HRC export shipments recorded over 1 mn t in Jun'20

Indian bulk HRC export shipments have hit a new high in Jun'20. The shipments were recorded at over 1 mn t in Jun'20, significantly up by 62% m-o-m from 0.75 mn t in May'20, while marked a sharp increase on a yearly basis as against 0.19 mn t in Jun'19.

China accounted for the largest share in India's Jun'20 bulk HRC export shipments with nearly 43% share followed by Vietnam at 24% and UAE at 7%.

Key Reasons

• Pandemic related logistical barriers- The logistics industry in the country has suffered much with the movement of materials inside the country, especially the route falling through containment zones or highly infected regions. Also, the extension of lockdown until 30 Jun in a few regions also disrupted commutation through the areas. However, movement of materials designated for export hasn't seen such barriers.
  
  
• Better demand from overseas importers- Importers, especially in the Southeast Asian markets have been booking Indian cargoes on competitive prices, especially those from Vietnam, while Chinese importers also booked some cargoes. However, importers in China are not booking imports because of the monsoon seasonal disruptions and mills there are shifting focus to the overseas market.
  
  

Outlook- After a splendid export season during Apr-Jun'20 quarter, there seems a softening of demand looming ahead with monsoon season hitting the Southeast Asian countries. Meanwhile, with the rains, the domestic steel demand is also going to weaken on the seasonal slowdown in the Jul-Sep quarter. However, having a competitive edge over offers, Indian steel producers might continue exporting in the upcoming months.