India's flat steel exports up by 12% in July-Sept'21

India's flat steel exports rose 12% to 4.13 million tonnes (mn t) in the second quarter (Jul-Sept'21) of the current financial year of 2021-22 (Q2FY'22) compared to the previous quarter (Apr-Jun'21), as per data maintained with SteelMint.

Data also reveals that HRC/plates, which traditionally comprise the highest share of flat steel exports from China, rose 19% in Q2 to 2.13 mn t compared to 1.79 mn t in Q1. Plates exports have risen due to the rise in ship-building orders globally fuelled by a scarcity in vessels.

Vietnam top importer: Among individual countries, exports to Vietnam were the highest in Q2. Volumes spurted by 52% to almost 0.60 mn t in Q2 against 0.39 mn t seen in Q1 due to the pent-up demand unleashed as soon as the country started easing lockdown curbs over July-Sept'21.

Europe volumes drop: Interestingly, exports to Europe have declined q-o-q. For instance, volumes to Belgium dropped a sharp 43% on the quarter from 0.80 mn t in Q1 to 0.46 mn t while those to Italy were down 37% to 0.44 mn t from 0.71 mn t in the period under review. Volumes to Spain were down 27% q-o-q to 0.15 mn t in Q2 against 0.21 mn t against Q1.

Exports to Europe dropped in Q2 because the Indian mills had exhausted their entire quota for the year in Q1 itself. Whatever volumes were sent across in Q2 had actually been booked much in advance and the shipments merely happened in the second quarter.

Turkey emerging market:With Europe quotas exhausted, Turkey emerged as a key market in Q2 for India mills with 0.35 mn t against 0.24 mn t seen in Q1, a considerable 46% increase on the quarter due to rising consumption. Data reveals this country's steel consumption was up 20% over Jan-Aug'21.

Company-wise exports

ArcelorMittal Nippon Steel India (AM/NS India) was the top exporter in Q2 as in Q1, although its volumes dropped 5% q-o-q to 0.68 mn t (0.72 mn t). JSW Steel followed with a 22% increase to 0.76 mn t (0.62 mn t). JSW Steel Coated Products was the third largest exporter with 0.54 mn t (0.49 mnt), up 10% q-o-q. Tata Steel's volumes rose 34% to 0.50 mn t (0.37 mn t).