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China top buyer of Indian steel under lockdown, accounts for 48% exports

China top buyer of Indian steel under lockdown, accounts for 48% exports


News is brought to you by Mr. Shailesh Karia


Published on date 29th June 2020.


In April and May, while India was under curbs to contain the Covid-19 pandemic, China emerged as the most important export destination for steel companies, accounting for about 48 per cent of total steel exports.


According to Joint Plant Committee (JPC) data, finished steel exports to China during April 1, 2020 and May 31,2020, stood at 440,000 tonnes while semis was at 1 million tonnes; total finished steel exports during the same time was at 1.7 million tonnes and semis at 1.3 million tonnes. While in finished steel exports, volumes to Vietnam were higher, China accounted for the lion`s share of semis.


Icra senior vice president, Jayanta Roy, said, that in the first two months of the current fiscal, Indian exports of finished steel reportedly grew by almost 76 per cent on a YoY basis.


"China alone accounted for close to 60 per cent of the increase, importing 440,000 tonnes of steel from India this year so far compared to negligible levels in the previous year. Overall steel exports grew at a faster pace of 129 per cent YoY in April and May this year because of a near three-fold increase in the export of semis," he added.


As domestic demand in India crashed, primary and secondary steel producers in the public sector and private sector resorted to exports.


Jayant Acharya, director-commercial & marketing, JSW Steel, said, exports of products to China have been more in semis and hot rolled coils. "Exports of semis would be both from primary producers and secondary producers. Our export proportion to China is not that high," he added.


Tata Steel managing director and chief executive officer, T V Narendran, explained that companies were exporting to China because demand was strong. "China is finding it better to import steel than import iron ore and coal at today`s prices," he said.


China is one of the biggest iron ore importing countries. Iron ore prices, which were about $83 a tonne in end-March, are currently at around $103 a tonne. Prices of coking coal, the other major input, have however, dropped during the same period $146 a tonne to $114 a tonne.


 


Source :  https://www.business-standard.com/


 





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