Indian Steel Exports See First Uptick This Fiscal, Imports Decline in October

India's steel exports saw a notable rise in October, marking the first uptick this fiscal year. The country's outbound shipments grew by 11% month-on-month to 0.44 million tonnes (mt) in October, compared to 0.4 mt in September. On a year-on-year basis, exports surged by 51%, up from 0.29 mt in October 2023.

Imports for the month also moderated for the first time this year, falling 4% to 0.98 mt from nearly 1.1 mt in September, following the government's tightening of import norms. Year-on-year, however, imports remain elevated, up 34%, indicating ongoing pressure on India's steel trade. Imports for the first seven months of the fiscal (April to October) totaled 5.72 mt, marking a 40% increase from last year, surpassing exports of 2.75 mt by a margin of 2.97 mt.

The moderation in imports has been attributed to India's imposition of quality controls and stricter regulations on non-BIS offerings. Additionally, the Chinese stimulus has helped stabilize steel prices in India, contributing to the recovery in October. Despite these positive developments, margins for domestic steel manufacturers remain under pressure.

In terms of pricing, PSU-major SAIL reported improved domestic steel prices, especially for long products, which rose by around 2% sequentially to ₹53,000 per tonne in October. However, prices for flat products saw a decline, down 4% to ₹47,000 per tonne. For JSW Steel, the largest steel-maker in India, pricing improved post-September's slump, with restocking demand and improved sales from institutional customers contributing to the positive outlook.

India’s steel production for the April to October period stood at 82.65 mt, a 4.4% year-on-year increase, with over 86% of it coming from the private sector. Steel consumption also saw strong growth, increasing by 13%, according to the Ministry’s report.

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