The Indian Mission in Tanzania has asked Indian steel mills to explore the possibility of upping exports to the African nation.
Currently, China, South Africa, and Japan dominate the Tanzanian market; the Union Steel Ministry might consider pushing Indian offerings, which are already in high demand.
The High Commissioner of India to Tanzania, Binaya Srikanta Pradhan, has proposed sending a business delegation by the end of this year to facilitate a buyer-seller meeting.
Details of the letter
businessline has reviewed a copy of the letter.
“....while India is leading in certain segments such as bridges, lock gate towers, doors and windows, pillars and column rods and angles, it lags in other segments such as iron or non-iron alloy steel... A visit by Indian stakeholders dealing in steel sectors will be a good idea to promote our steel sector export,” the letter by Pradhan stated.
As per the letter, the Steel Ministry can consider sending a business delegation during September-December period.
“We discussed the issue with major importers and local steel manufacturers who manufacture basic items using scrap as raw material. It is felt that with some efforts India can increase its exports in the segments where it is at present lagging,” the letter said.
India’s market share in Africa
In 2022, Tanzania — one of the largest countries in the African continent — bought iron and steel and articles worth $1250.27 million. Indian export was $105.52 million.
India currently is the fourth largest supplier of iron and steel to the African nation with a market share of 8.44 per cent in 2022. Market share fell from 8.75 per cent in 2021, but improved in 2020 when it was 6.15 per cent.
Other countries like China improved its share to 41.47 per cent (vs 38 per cent in 2021 & 36.6 per cent in 2020). South Africa’s market share is 12.58 per cent (an improvement over 9.84 per cent in 2021 and 8.45 per cent in 2020), while Japan is at 11.43 per cent (it declined from 15.82 per cent in 2021 and 8.31 per cent in 2020).
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Indian exports statistics
In the iron and steel export category, Indian players had a stable market share of 6 per cent (compared to 2020) or $49.25 million in 2022; while in the category-specific break up (classified as articles of iron and steel) its market share doubled to 14 per cent (over 2020) to $56.27 million.
According to documents available with the Ministry, in the flat rolled products of iron or non-alloy steel, hot rolled, plated, and coated category, India was among the top six suppliers with exports being valued at $0.91 million.
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In fact, exports in the category fell from $2.59 million in 2020 to $1.17 million in 2021. Against this, Chinese exports increased from $68.32 million in 2020 to $182.21 million in 2022.
In the flat-rolled product category, the country lost market share slipping down to the 10th spot from the eighth rank in 2020. In value terms, exports stood at $0.10 million in 2022 versus $0.32 million in 2020.
Indian exporters topped in the bridge and bridge section segment which stood at $23.05 million in 2022, up threefold over 2020-levels of $7.28 million.
Railway track and construction material exports were a category in which India saw some gains, but in value wise it remained at 2020 levels of $0.14 million.