Indian Mills Eye Export Market as Domestic Demand Cools Down

Indian mills are eyeing export market amid fall in domestic demand due to seasonal slowdown, SteelMint learned from market sources.

Exports from India was limited in last few months owing to better realizations in domestic market. Prices in domestic market increased by up to INR 2,000-3,500/MT for rebar and INR 1,500-2,000/MT for flats in last 3-4 months, which was a result of increased demand from government projects.

But with monsoons arriving Indian subcontinent, it has slowed down construction activity and demand for steel products.

To overcome this, Indian steel mills are looking active in export market. Recently a bulk cargo of 25,000 MT HRC was heard concluded at USD 610-615/MT CFR Vietnam. Another private Indian mill heard to have booked 10,000 MT to Sri Lanka at around USD 535-540/MT FOB India.

Net sales realisation for both deals concluded is lower than the current prices hovering in domestic market. But mills are forced to make export bookings in order to avoid piling of inventories.

According to sources, Vizag steel is coming up with a bulk billet export tender by next week for July delivery.

Indian finished steel exports drop 23% in May

According to provisional data released by Joint Plant Committee (Govt. of India) India has exported 0.43 MnT of finished steel in May'18, down by 23% on monthly basis against 0.588 MnT in Apr'18.

However on yearly basis the same moved down by 33% over May'17.