India's finished steel exports drop 6% m-o-m in Aug'23: JPC data

India's finished steel exports declined by 6.4% m-o-m to 0.480 million tonnes (mnt) in August 2023 compared with 0.513 mnt in July 2023. However, export volumes went up by 5.7% y-o-y against 0.454 mnt in August 2022, as per provisional data released by the Joint Plant Committee (JPC) under the Ministry of Steel.

In August 2023, Indian steel mills decided to prioritise supplies to the local market instead of exports due to higher prices. This led to them to withdraw offers from traditional export markets such as Vietnam and the Middle East. SteelMint's HRC (SAE1006) export index remained constant at $570/ton FOB East Coast for the ninth consecutive week, but by the end of the month, it rose to $580/t FOB. Moreover, because higher prices were being negotiated in the domestic market, exporting steel was not as profitable in the current situation.

In April-August 2023, export volumes edged up by 0.6% y-o-y to 3.043 mnt as against 3.024 mnt in the same period a year ago.

Finished steel imports decline m-o-m

India's finished steel imports declined m-o-m in August after continuing to move upward in July this year. Imports volume decreased by 9.7% to 0.530 mnt in August 2023 as against 0.587 mnt in July 2023. Y-o-y, the increase was 19.9% against 0.442 mnt in August 2022.

In April-August 2023, imports rose by 22.4% y-o-y to 2.519 mnt against 1.616 mnt in the same period last year.

Crude steel production marginally stable m-o-m

Crude steel production by Indian mills remained marginally stable m-o-m at 11.443 mnt in August 2023 as against 11.476 mnt in July 2023. However, the same increased by 12.8% y-o-y compared to 10.144 mnt in August 2022.

In April-August, 2023, crude steel output was up by 11.8% y-o-y to 57.260 mnt against 51.220 mnt in the same period last year.

Finished steel production edges up m-o-m

India's finished steel production stood at 10.938 mnt in August 2023. The volume edged up by 2.3% m-o-m against 10.697 mnt in July 2023. Meanwhile, the same rose by 9.9% y-o-y compared to 9.954 mnt in August 2022.

Finished steel production rose by 12% y-o-y to 54.483 mnt in the April-August period as against 48.658 mnt in the same period last year.

Finished steel consumption up m-o-m

India's finished steel consumption stood at 11.224 mnt in August. Consumption was up by 7.8% m-o-m as against 10.408 mnt in July. More0ver, consumption rose by about 16.9% y-o-y compared with 9.601 mnt in August 2022.

The market showed a slight recovery in trade volumes domestically amid the decline in prices in July. This provided the required platform for growth in volumes on both monthly and cumulative basis this fiscal year.

Finished steel consumption increased by 13.1% y-o-y to 52.361 mnt in April-August this fiscal as against 46.281 mnt in the same period last year.