India turned net importer for steel in July – for the first time this fiscal – with 5,87,000 tonnes coming in, a report of the Steel Ministry, accessed by businessline shows. Exports for the month were 5,13,000 tonnes.
While imports and exports both increased over 30 per cent YoY, lower priced offerings coming in, mostly from China, and slowing down in export offers led to the difference. Imports exceeded exports, for the month, by 74,000 tonnes.
This is the fourth time in over a year that India has turned a net importer of steel. In July last year, India had turned net importer of steel for the first time in four-odd years.
Imports in July last year were 4,44,000 tonnes while exports were at 3,80,000 tonnes.
Last year exports had been impacted following a levy by the Centre that sought to bring domestic inflation under control.
“So, while steel exports are up YoY because of July 2022’s base effect, on a sequential basis, that is June versus July of 2023, they are at the same 500,000 tonnes (flattish) following poor orders and global recessionary traits. Even for the April - July period of the fiscal (four months) exports are flat, while imports are up by 23 per cent YoY, as per the Ministry’s provisional numbers,” a Ministry official said.
For April to July period, India remained a net exporter of steel though. Exports were at 25,63,000 tonnes and imports were at 19,89,000 tonnes.
Segment-wise break up
Incidentally, for July, India’s key import item was non-alloyed steel that increased 63 per cent YoY at 411,000 tonnes; making up for 70 per cent of basket. Non-alloyed steel imports last year were 2,52,000 tonnes.
On the other hand, alloyed and stainless steel shipments coming in dipped 8 per cent to 1,76,000 tonnes (from 1,92,000 tonnes).
In case of exports, non-alloyed steel shipments increased 190 per cent to 454,000 tonnes (from 156,000 tonnes); whereas stainless steel and alloyed offerings saw their highest fall of 74 per cent to 58,000 tonnes (from 223,000 tonnes).
For April-July period, non-alloyed steel shipments coming to India were 1318,000 tonnes, up 52 per cent, from 870,000 tonnes in the year-ago-period. Alloyed and stainless imports declined 10 per cent YoY to 670,000 tonnes (from 746,000 tonnes).
In case of exports, there was an 11 per cent increase in non-alloyed steel shipments at 22,74,000 tonnes (up from 20,41,000 tonnes) while stainless and alloy steel shipments fell 45 per cent to 2,89,000 tonnes (from 5,29,000 tonnes).