Monday, June 27th, 2022

Rising International Prices Boost Steel Exports From India

India’s primary steelmakers have increased their share of exports in Q4 amid rising international steel prices. JSPL’s share of exports in sales was around 21% in Q3 as against 38% in Q4. SAIL has increased exports to 0.40 million tonnes from 0.27 million tonnes in Q3 as sources said that there was a significant rise in exports.

As per estimates by analysts, the share of exports is to rise in the first half of FY 21, and will increase by 12-16% in FY 22, due to widening spreads between export and domestic realisations. Data from ministry indicates that finished steel exports in 2020-21 was around 10.79 million tonnes, showing a growth of 29% year-on-year and export of semis in the 11 month period till February 2021 grew by 131% to 6.09 million tonnes. While exports of finished steel in the first quarter of fiscal 2021 were driven by low domestic demands due to pandemic-led lockdown, the surge in the last quarter was led by higher export realisation. “Overall in fiscal 2021, exports increased 29%. The momentum is expected to continue and push finished steel exports another 12-16% higher this fiscal,” said a report by rating agency Crisil.

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