Steelmint predicts that reduced Indian exports in 2019 would be caused by cheap Chinese steel

 Steelmint predicts that reduced Indian exports in 2019 would be caused by cheap Chinese steel

Steelmint predicts that reduced Indian exports in 2019 would be caused by cheap Chinese steel

While imports were at a three-year high, India's steel exports for FY 2022–2023 were 6.72 million metric tonnes (MT), down almost 50% from the previous year.

In order to investigate methods for reducing imports, authorities have started to interact with indigenous manufacturers.

In 2024, inexpensive Chinese exports will continue to challenge Indian steelmakers by restricting their shipments to the EU, away from usual clients Vietnam and the Middle East, according to market research company Steelmint, assuming that demand conditions stay weak.

"Mills could need to allocate more money for exports. However, China's monthly export volume may not go above 8 million tonnes if government policies and incentives do not boost local demand, according to Steelmint. Is not."

According to a research released in April by global analytics company S&P, India's steel exports for the fiscal year 2022–2023 was at 6.72 million tonnes (MT), down over 50% year-over-year, while imports were at a three-year high. Indian steel's competitiveness in global markets was weakened by excessive Chinese dumping, which had an effect on the profit margins of companies like Tata Steel and JSW Steel.

"There will be excess supply and domestic steel prices may come under additional pressure if demand does not expand at the same rate in CY24, particularly because stockpiles in the system are high,” Steelmint said.

As previously reported by the media earlier this month, authorities have started to meet with local manufacturers to discuss ways to limit imports. To increase output and lessen reliance on imports, the government is also thinking about implementing the Production Linked Incentive (PLI) Scheme 2.0.

According to Steelmint, tighter regulations and the BIS (Bureau of Indian Standards) may have the impact of reducing imports, which would raise the price of steel.

In 2024, domestic demand will decline.

Currently, domestic players are emphasizing local demand in relation to the rate of infrastructure development. However, Steelmint noted in its research that there would be general elections the following year, and the projects may be shelved until the new administration is established.

It said that the adoption of the electoral code of conduct may cause awards to building projects to be blocked and money to be delayed after the formation of the new administration.