InvestorQ : Why are steel exports falling in the recent months post the pandemic?
swati Bakhda made post

Why are steel exports falling in the recent months post the pandemic?

Sam Eswaran answered.
1 year ago

It is true that steel exports are falling but then this is not just about exports weakening but about domestic demand becoming robust. For example, Steel exports are expected to remain low in Mar-21 due to strong domestic demand from local steel consuming areas like construction and heavy equipment as well as robust realisations in India.

According to a report put out by rating agency, India Ratings, the total exports of finished steel in Jan-21 was 6% lower sequentially at 0.58 MT and the number was actually 16% lower on a yoy basis. Most of the steel producers currently are focused more on domestic sales. This is in stark contrast to the pandemic scenario when export volumes had grown by a whopping 23% at 8.84 MT.

Meanwhile, it is expected that the reduction in import duties to 7.5% on all semi and finished-alloy and non-alloy steel products will have stabilising impact on domestic supplies. However domestic hot rolled coils or HRC prices are still 40% higher yoy and India’s crude steel output stood at 10 MT. However, one more factor that is constraining the exports of steel in the current month, is the non-availability of containers to transport goods.