India witnessed a notable increase in steel exports by around 21 per cent in February compared to January, reaching 1 million tonnes (mt). Conversely, steel imports remained steady at 0.76 mt during the same period. This marks the second consecutive month in 2024 where India has been a net exporter of steel.
According to a report by the steel ministry, on a year-on-year basis, outbound steel shipments surged by 78 per cent in February, while finished steel shipments showed a 29 per cent increase for the month. In January 2024, exports stood at 0.8 mt, with imports totaling 0.77 mt.
A Steel Ministry official noted that the import situation is gradually improving and is being closely monitored, attributing the fluctuations to short-term phenomena.
The increase in exports has led to a reduction in the deficit between outbound and inbound shipments, making India a net importer by 0.9 mt for the first 11 months of FY24 (April – February), with the gap narrowing by 0.2 mt. Imports during this period rose by 36 per cent year-on-year to 7.58 mt, while exports increased by 13 per cent to 6.65 mt.
Imports exceeded exports by 1.1 mt during the April to January period, marking the highest disparity in recent times. However, exporters anticipate a balancing out of this difference soon, citing an upward trend in exports over the past few months, particularly in Q4 (January – March), which is typically a strong quarter. Additionally, the global production glut has reduced, stabilising imports as well.
The Steel Ministry report highlights that non-alloy steel, a significant offering, witnessed a staggering 100 per cent year-on-year increase in exports to 0.98 mt in February. Meanwhile, alloyed and stainless steel exports experienced a 44 per cent rise to 50,000 tonnes. Conversely, imports of non-alloyed steel surged by 42 per cent to 0.61 mt last month, while alloyed and stainless steel imports saw a 4 per cent decline to 0.155 mt.
These developments underscore the dynamic nature of India’s steel industry, with exports driving momentum while imports maintain stability, albeit with fluctuations in the short term.