India's finished steel exports rise by 21.3% m-o-m in Feb'24: JPC

• India's finished steel exports rise m-o-m; imports edge down
  
  
• Crude steel, finished steel production decline m-o-m
  
  
• Finished steel consumption falls m-o-m
  
  

In February 2024, India's finished steel exports sustained a notable uptick, surging by 21.3% m-o-m to reach 1.026 million tonnes (mnt), compared to January's 0.846 mnt. This marked a substantial y-o-y increase of 78.4% from the 0.575 mnt recorded in February the previous year, as per provisional data released by the Joint Plant Committee (JPC) under the Ministry of Steel.

The main contributors to this surge in export growth encompass increased demand in the European market, as buyers prefer Indian steel over costlier domestic alternatives. Furthermore, the appeal of Indian steel exports has grown in the Middle East, as Indian steelmakers offer competitive pricing in contrast to Chinese offerings.

The cumulative export volume for April 2023-February 2024 also showed positive growth, increasing by 12.6% y-o-y 6.645 mnt compared to 5.904 mnt in the same period a year ago.

Finished steel imports see marginal decline m-o-m

Finished steel imports into India experienced a marginal decline of 0.9% m-o-m to 0.764 mnt in February 2024 as compared to 0.771 mnt in January 2024. However, imports rose by 28.8% y-o-y from 0.593 mnt in February 2023. The influx of competitively priced steel from China and South Korea have contributed to a rise in imports, posing a challenge to domestic steel producers.

In April 2023-Februaty 2024, imports increased by 35.6% y-o-y to 7.583 mnt against 5.592 mnt in the same period last year.

Crude steel production falls m-o-m

Crude steel production fell by 3.7% m-o-m from 12.051 mnt in February 2024 to 12.514 mnt in January 2024. Moreover, production displayed a healthy y-o-y growth of 13.8%, surpassing 10.587 mnt produced in February 2023. For the period of April 2023- February 2024, cumulative crude steel output remained positive, registering a 13.5% y-o-y increase. Production reached 130.998 mnt in the said period against 115.402 mnt in the same period previous year.

Finished steel production declines m-o-m

India's finished steel production experienced a decline of 4.3% m-o-m to 11.477 mnt in February 2024 as compared to 11.986 mnt in January 2024, while maintaining robust growth y-o-y of 9.5%, surpassing the 10.480 mnt produced in February 2023.

For the period April 2023-February 2024, cumulative finished steel production registered a significant 12.9% y-o-y increase. Production reached 125.9 mnt, compared to 111.532 mnt in the same period of the previous year.

Finished steel consumption falls m-o-m

India's finished steel consumption fell by 4.6% in February 2024, reaching 11.334 mnt from 11.88 mnt in January 2024. On a y-o-y basis, consumption grew by 8.8% compared to 10.415 mnt in February 2023.

This strong performance extended to the cumulative period of April 2023- February 2024, where total finished steel consumption climbed to 123.831 mnt, a 13.9% increase from 108.704 mnt recorded during the same period in the previous year.