India's finished steel exports fall sharply by over 65%, y-o-y, in August: Govt data

India's finished steel exports fell sharply by 66% y-o-y to 454,000 tonnes (t) in August 2022 as against 1.331 million tonnes (mnt) in the same period last year. Exports fell by 53% y-o-y to 3.024 mnt in April-August in contrast with 6.40 mnt in the corresponding period of last year, as per provisional data released by Joint Plant Committee (JPC).

Key reasons for decline in exports:

• Weak demand from key importing nations: India's exports volumes were majorly impacted by weak demand from key importing nations like Vietnam due to higher preference for domestic HRC amid overall low steel demand. For instance, India's flat steel exports to Vietnam almost halved to 490,000 t in January-July 2022 compared with 960,000 t in the same period last year, as per customs data.
  
  
• Low demand for boron-added HRC: After the imposition of 15% export duty on clad or plated non-alloyed flat steel products by the government in late-May 2022, Indian mills started offering boron-added HRCs. However, this further reduced buying interest for Indian HRC, especially in the Vietnamese and European markets.
  
  

However, on monthly basis, export volumes rose by 19% as against 380,000 t in July.

Crude steel production up 2% y-o-y in August
Crude steel production by Indian mills stood at 10.264 mnt in August, up 2% from 10.086 mnt in August 2021. The volumes were higher this year despite mills taking maintenance shutdowns majorly due to the lower capacity utilisation in the June-August 2021 period amid Covid-related disruptions.

Also, capacity expansion by steel majors has contributed to the growth in production volumes. For instance, JSW Steel completed the expansion of the Dolvi works to 10 mnt in October 2021.

During April-August 2022, crude steel output increased by 7% y-o-y to 51.350 mnt compared with 47.828 mnt in the same period last year. Output rose 2% m-o-m compared with 10.070 mnt in July.

Finished steel production rises 4% y-o-y in August
India's finished steel production rose by 4% y-o-y to 9.736 mnt in August compared with 9.341 mnt in the same period last year.

Finished steel production increased by 8% y-o-y to 48.273 mnt during the April-August period as against 44.607 mnt in the corresponding period last year. Production rose 2% m-o-m against 9.536 mnt in July.