India's finished steel exports drop 28% m-o-m in Jun'23: JPC

India's finished steel exports fell by 28% m-o-m to 0.502 million tonnes (mnt) in June 2023 compared with 0.693 mnt in May 2023. Export volumes decreased by 21% y-o-y against 0.638 mnt in June 2022, as per provisional data released by the Joint Plant Committee (JPC) under the Ministry of Steel.

Chinese monthly average HRC (SS400) export offers were around $555/t FOB Rizhao in June, while Indian HRC (SAE1006) offers were around $568/t FOB east coast India. Competitive offers from China put pressure on Indian mills, resulting in lower export volumes.

Moreover, subdued global steel market demand due to the Dragon Boat Festival in China (22-24 June) as well as Eid-ul-Adha holidays (28-30) in the Middle East also impacted export volumes in the month.

In Q1 FY'24 (April-June 2023), export volumes fell by 6% y-o-y at 2.050 mnt against 2.190 mnt in the same period a year ago.

Finished steel imports increase m-o-m

India's finished steel imports edged up 6% at 0.484 mnt in June 2023 as against 0.457 mnt in May 2023. However, imports rose by 8% against 0.450 mnt in June 2022.

In Q1 FY'24 (April-June 2023), imports rose by 20% y-o-y to 1.401 mnt against 1.172 mnt in the same period last year.

Crude steel production up marginally m-o-m

Crude steel production by Indian mills stood at 11.280 mnt in June 2023, up 1% from 11.167 mnt in May 2023. Moreover, output increased by 14% y-o-y compared to 9.922 mnt in June 2022.

In Q1 FY'24 (April-June 2023), crude steel output rose by 8% y-o-y to 33.633 mnt against 31.034 mnt in the same period last year.

Finished steel production inches down m-o-m

India's finished steel production stood at 10.524 mnt in June 2023. Production decreased by 4% m-o-m as against 10.999 mnt in May 2023. In addition, production rose by 12% y-o-y compared to 9.398 mnt in June 2022.

Finished steel production rose by 12% y-o-y to 32.414 mnt in the April-June quarter as against 29.030 mnt in the same period last year.

Finished steel consumption falls m-o-m

India's finished steel consumption stood at 9.880 mnt in June 2023. Consumption fell by 5% m-o-m as against 10.426 mnt in May. However, consumption rose by 14% y-o-y compared to 8.681 mnt in June 2022.

Finished steel consumption increased by 10% y-o-y to 30.294 mnt in April-June 2023 as against 27.501 mnt in the same period last year.