India remains net importer of steel for April-Aug

India remained a net importer of steel by 1.6 million tonnes (mt), as shipments coming into the country continued to witness an increasing trend on a year-on-year basis. Imports stood at 3.5 mt, up 25 per cent y-o-y while exports at 1.9 mt, down 40 per cent y-o-y for the April to August (5MFY25) period of the fiscal, as per a Steel Ministry report accessed by businessline.

In the comparative period last fiscal, the country was a net exporter of steel.

Total steel production and consumption during the period saw a 5 per cent and 14 per cent increase y-o-y to 59 mt and at 60.3 mt, respectively. August saw the highest average steel usage (amongst the first five months of the fiscal), at 12.6 mt, the report said.

In the year-ago period 5MFY24, India’s steel exports were at 3.2 mt, while imports were lower at 2.8 mt. Thus, India was a net exporter at 0.4 mt. Finished steel consumption during this period was at 53 mt, while production was 56 mt.

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August Import Trends

For August, finished steel imports stood at 0.8 mt, up 4 per cent, y-o-y as compared to 0.7 mt in the comparative period last year. However, on a sequential basis (compared to July), imports remained flattish.

Non-alloyed steel imports were at 0.54 mt in August, near flat on a y-o-y basis, while on a sequential basis (August vs July) there was 7 per cent decline. July imports in the category was 0.6 mt.

Alloyed and stainless steel imports saw a 5 per cent increase to 0.22 mt y-o-y, as per the Steel Min report; while on a sequential basis it increased 29 per cent.

Production and Consumption

In August, finished steel consumption at 12.6 mt, was up 5 per cent sequentially, with July numbers being around 12.1 mt. Post April, when steel consumption was around 11 mt, the average in May and June has been hovering around 12.2 mt - levels.

Finished steel production in August was around 12 mt, up around 2 per cent sequentially. It stood at 11.66 mt in July. In comparison, y-o-y increase was 4 per cent, with August 2023 production being to the tune of 11.47 mt.

Production by six large producers, which include Tata Steel, JSW, AM/NS India, SAIL, JSPL and RINL, was down 4 per cent y-o-y in August 2024 to 6.4 mt, while other producers increased production by 14 per cent to 5.8 mt. Sequentially (compared to July), production by major mills remained flat, while for other producers it saw a 4 per cent rise.