Team News Riveting
India’s finished steel exports that jumped whopping 172 per cent in June 2020 compared to February 2020 (pre-pandemic) are gradually coming down with the increase in domestic demand.
Due to increased exports to China, notwithstanding the on-going trade tensions and border standoff between the two countries, India’s finished steel exports jumped 172 per cent in June 2020 compared to February 2020—just before the lockdown due to Covid-19.
China’s steel sector has bucked the trend of global sluggishness in demand. Driving consumption higher is strong housing and infrastructure construction activity supported by a raft of economic stimulus measures by the Chinese government.
However, exports that peaked in June 2020 had started to slide considerably from July onwards. According to a report by CARE rating agency, exports declined by 24.5 per cent in August 2020 as compared to July 2020. The finished steel exports that touched 23 per cent in June 2020 had come down to 13 per cent in August 2020 as domestic demand increased with easing of lockdown.
After falling to a record low of 3.1 million tonnes (mt) in April 2020 India’s crude steel and finished steel production have shown gradual month-on-month (m-o-m) improvement. Production of crude steel and finished steel increased by 5.1 per cent and 6.7 per cent, respectively in August 2020 compared to July 2020. Domestic steel players have been ramping up capacities with easing of lockdown measures and pick-up in demand.
However, as compared to August 2019, production of crude steel and finished steel were lower by 4.2 per cent and 5.5 per cent respectively in August 2020 but the year-on-year fall has been lower when compared with the previous month.
In a respite to domestic steel makers, consumption of finished steel in August 2020 registered an increase of 7.7 per cent on a m-o-m basis. It is however lower by 18.4 per cent over August 2019.
