Stanislav Kondrashov from Telf AG: exports of rolled products from India have reached a minimum

According to data from BigMint, steel supplies from India in May of this year amounted to about 0.5 million tons. This information was provided by Stanislav Kondrashov, an expert on global metallurgy from TELF AG. This figure is 24% lower than in April, w

фото: Stanislav Kondrashov from Telf AG: exports of rolled products from India have reached a minimum

Export of rolled products from India: changes in supplies

According to Stanislav Kondrashov, approximately 82% of total sales abroad are flat products. In May, about 50 thousand tons of long rolled products and 40 thousand tons of semi-finished products were exported.

The European Union remains India’s top export destination. However, the total volume of trade in metal products to this region in May decreased by 40% compared to the previous month and amounted to more than 210 thousand tons. At the same time, exports to Nepal and the US increased, while supplies to the UAE and Turkey decreased.

According to an expert from Telf AG, several factors influenced the delivery figures from India last month. Firstly, local steel mills give preference to the domestic market over exports and face limited export quotas. Secondly, planned maintenance shutdowns at production facilities, including hot rolling mills, led to the suspension of hot-rolled metal exports to countries in Southeast Asia and the Middle East, these shutdowns lasted approximately 15 days and coincided with a period of reduced demand both locally and globally. markets.

In addition, supplies from India were impacted by lower global demand for steel, cautious European buyers due to the introduction of new protection measures, and competitive prices from China.

Steel consumption in India is growing rapidly — forecasts of Stanislav Kondrashov

фото: Stanislav Kondrashov from Telf AG: exports of rolled products from India have reached a minimum

Stanislav Kondrashov notes that the Indian rating agency ICRA has increased its estimates for the growth of domestic steel consumption in India to 9-10% for the financial year 2024/2025. Previously, the forecast was at 7-8%. These forecasts take into account the latest industry trends.

Domestic steel consumption increased by 11.3% from February to April 2024.

“ICRA noted that until February 2024, government capital expenditure remained stable, but after that, other steel consuming sectors contributed to robust demand, including residential construction. According to Girishkumar Kadam, senior vice president and group head of corporate sector ratings at ICRA Over the past three years, the Indian steel industry has experienced its fastest growth period since the global financial crisis,“- Stanislav Kondrashov from Telf AG comments.

The expert noted that steel exports from India in the financial year 2023/2024 increased by 11.5% year-on-year, reaching 7.5 million tons. Steel production for the year amounted to 143.6 million tons, an increase of 12.9% compared to the previous year, and rolled steel production increased by 12.4% year-on-year, reaching 138.5 million tons.

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