Steel Deficit: Even if local steel production and consumption have grown, there are still issues with the global market that affect India’s export environment as demand declines in important regions like Europe and Vietnam.
India reported a trade deficit in steel shipments (value of imports surpassing exports) for the second year in a row due to the ongoing decline in export demand.
The trade imbalance for the April–October 2023 period was ₹1,594 crore, according to preliminary figures obtained by Businessline from the Steel Ministry. During the period, the total value of finished steel imports was ₹31,354 crore ($3,798 million), whereas the total value of exports was ₹29,760 crore ($3,605 million).
Imports were 3.48 million tonnes (mt), up 10% year on year, but a bit lower (0.04 mt) than exports, which were 3.52 mt, down 12% year on year.
Exports were impacted by duty last fiscal year, and the trade deficit in 7M FY23 was 1,775 crore; in previous years, 7M FY22 and 7M FY21, the trade surplus was 38,800 crore (approx) and 7,670 crore (approx), respectively.
China’s steel prices maintained their downward bias, remaining under pressure from easing production controls and low local consumption amid a weak construction/property sector, the Ministry reported in its review, noting that global steel price trends remained mixed in October 2023 due to a combination of local and global issues. It was a mixed bag with variations observed among goods in the USA and Europe.
