India's HRC export shipments doubled in Q1 FY'21 on China demand

India's HRC export shipments surged by 124% q-o-q to 2.19 mn t in Q1 FY'21 compared with 0.98 mn t in Q4 FY20 on the back of strong demand from China.

Export volumes in Jun'20 were at 1.21 mn t, a record monthly high, according to SteelMint data.

Shipments to China were 0.74 mn t in Q1 FY'21, accounting for 34% of total exports, compared with 0.03 mn t in Q4 FY'20.

Vietnam accounted for a 30% share in exports followed by UAE with 14% share in Q1 FY'21.

Exports to China are unlikely to be sustainable as it is the largest HRC producer and exporter in the world and is unlikely to need many overseas supplies for the rest of 2020. Mills in China have ramped up output since these started normal operations in May, post the Covid19 lockdown imposed in March and April.

Limited domestic offtake in India in April and May due to lockdown pushed mills to put out more export offers. Manufacturing and construction works were mostly shut down in April and May, but have since recovered at a slow pace.

Competitive offers from India generated higher sales in major overseas markets. Most Chinese mills aggressively imported HRC, slab and billet from India as these mills were low on stocks immediately after the lockdown was eased in China.

Shipper & country-wise table Q1 FY'21 vs Q4 FY'20
Quantity in mn t
Source: Bulk data, Compiled by: SteelMint Research