Morning Brief: Europe tops India's 2021 steel exports charts with 31% share

India's steel exports in 2021 were mainly driven by volumes to Europe, reveals data maintained with SteelMint.

The share of Europe was 31% at 6.42 million tonnes (mnt) in the total 20.54 mnt exported in 2021, followed by South Asia, at 4.16 mnt, with a 20% share. The Middle East's share was at 16% with 3.91 mnt.

• Europe demand surge: The Continent's share spurted a humongous 173% y-o-y, primarily because of the economic revival there post the first Covid lockdowns in 2020. The first two quarters of 2021 thus offered Indian mills huge opportunities to export, a period that co-incided with the devastating Delta wave in India which had dented domestic demand. The dovetailing of both factors led to mills exhausting their Europe quotas in the very first five months of 2021. The 6.42 mnt remained in the supply pipeline throughout last year although fresh bookings did not happen. The Continent is mainly a destination for flat products. Personal mobility and work-from-home compulsions forced a rise in automotive, home appliances and related demand that use cold rolled coils and galvanized products.
  
  

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• South East Asia: The share of South Asia dropped a sharp 46% to 4.6 mnt, driven by Vietnam's demand decline due to the severe second wave of the pandemic. Starting Apr'21, Vietnam faced major Delta outbreaks in Hanoi and Ho Chi Minh City, leading to lockdowns in both. Strict control in the industrial areas eventually affected production. That apart, Vietnam imported in large volumes from Russia, supported by its rock-bottom prices. It may be recalled, Russia had slapped a 15% export tax over Aug-Dec'21 ahead of which Russian mills had offloaded HRC inventory at highly competitive prices that hovered around $850/t CFR levels in late Sept'21.
  
  
• Middle East and Africa: Volumes to this geography were lifted 68% y-o-y to 3.91 mnt, on the back of Turkey's procurements. It is an active flat steel buyer with its total imports of this category from various countries touching over 7 mnt in Jan-Oct'21.
  
  
• East Asia: Japan, Korea and Thailand saw an economic revival post-Covid lockdowns which spurred demand. Most major mills reported higher crude steel production. Imports spurted by 237% y-o-y to 1.33 mnt. Korea dominates the global ship-building industry and its demand for heavy plates drives it to import heavily. Thailand was an active buyer of Indian wire rods. South Korea's wire rod imports from India also increased in 2021 as against 2020.
  
  
• North America: This geography, comprising United States, Mexico and Canada (USMCA), saw imports from India spur by a huge 164% y-o-y to 0.69 mnt. Indian mills, after exhausting Europe quotas went in quest of newer destinations. USA recorded the sharpest rise in wire rod shipments from India, propelled by a price disparity between domestics and global prices, SteelMint notes.
  
  

JSW highest exporter

JSW Steel (along with its acquired companies Monnet Ispat and Bhushan Power and Steel) led the Indian steel exports show in 2021 with a 35% share. India's total steel exports in 2021 touched 20.54 mnt, showing a y-o-y rise of nearly 18%. Tata Steel and AM/NS India stood in 2nd and 3rd position with 12% and 10% share respectively.