India Logs 4.26 MT Steel Imports In April-Nov, To Touch 6 MT In FY24: CRISIL

Global steel demand has been subdued since the beginning of the Russia-Ukraine conflict, however, it is estimated to grow 1.6 per cent in 2023, after a sharp decline of 3.3 per cent in 2022.

India’s finished steel imports stood at 4.26 MT in the April-November period in the current fiscal year and are expected to touch the 6 MT (million tonne) mark in the 2023-24 fiscal year (FY24), owing to robust domestic demand, a report by CRISIL said. 

Global steel demand has been subdued since the beginning of the Russia-Ukraine conflict, however, it is estimated to grow 1.6 per cent in 2023, after a sharp decline of 3.3 per cent in 2022, the ratings agency noted. This report comes when steel players are seeing major concerns about increasing imports, reported PTI. 

CRISIL further said that the weak growth rate has been impacted by a 13 per cent growth in demand in India. In the current fiscal year, the steel sector is anticipated to log its third consecutive year of double-digit growth at 11-13 per cent, after surging 11.4 per cent and 13.4 per cent in the FY22 and FY23 fiscal years respectively. 

The agency credited the robust domestic demand, helped by government spending on infrastructure, building, and construction sectors towards elevating steel imports in India near the 6 MT mark in the current fiscal year in the face of the global industry facing slowdown concerns. 

Notably, Chinese mills have lately been pushing volumes into the global market at high prices. Between the January-November period this year, exports from China rose 35.6 per cent to 82.7 MT, and exports to India also increased.

As of November in the current fiscal year, India imported 4.26 MT of finished steel, up by 13.4 per cent on a year-on-year (YoY) basis, even as the exports dipped 6.2 per cent to touch 4.03 MT, in turn making the country a net importer of finished steel. Comparatively, steel imports remained around 5.6 per cent of the domestic demand at 6.7 MT in the previous fiscal year. 

Sehul Bhatt, associate director, research, CRISIL Marketing Intelligence and Analytics, said, “We expect imports to be around 5.5 per cent mark this fiscal, too. Although global prices increased in November, by 23 per cent in the US and 6 per cent in Europe, a few domestic steel mills have cut prices by Rs 1,500 per tonne in December from the October list prices with an eye on local demand.”