Iron and steel export from India rise by more than 100% in June.

Export of iron and steel products witnessed a sharp rise of more than 100% in June, even as export of engineering goods from India registered a decline of 7.24%, said an analysis report by engineering export promotion council of India, on Friday..

A drop in domestic demand, disruption in supply chain and acute shortage of construction labour led several top steelmakers to export more than 50-60% of their sales volume during May-June period. Iron and steel recorded more than 100% growth in exports during June 2020 with shipments of $1.32 billion against $653.52 million in the same month last year.

During June, exports of iron and steel to China rose by over 1400% to $524 million from $35 million in the same month last year, to Vietnam it went up by over 700% to USD 183 million and to Taiwan, the increase was 200% to $35 million.

With unlocking of the economy, the exports should come back on track and the trend would be reflected in the June numbers.

Domestic steel prices likely to fall in Q2 due to oversupply

Steel prices are expected to fall in the second quarter of this fiscal due to oversupply, further reducing margins for domestic steel producers. A report by credit ratings agency India Ratings and Research has estimated that prices of both hot rolled coils (HRC) and rebars will fall in the coming few months.

Both HRC and rebar prices were down 3% and 4% month-on-month in June. In May 2020, steel prices temporarily rose although higher inventories were available with steel players. This was due to logistical constraints and man-power availability issues, resulting in limited supply to end-use industries which gradually re-opened post relaxations in the lockdown.

“Domestic gross spreads per tonne (realisation per tonne of steel less the raw material cost per tonne of steel) for both hot rolled coil (HRC) and rebar are expected to fall further in 2QFY21 with a further fall in steel prices due to oversupply,” the report said. “This is because domestic production will gradually increase with the easing of lockdown restrictions along with no corresponding increase in steel demand. However, rebar spreads are likely to be less impacted over the near term up to end-FY21 compared to HRC due to a likely better demand pick-up, leading to a price increase backed by the expected implementation of government spending on infrastructure.”

Indian Steel Giant JSW Group Pledges To Cut Down $400 Million Import Bill From China To Zero In Two Years

Stating that the unprovoked attack by the Chinese on Indian soil and soldiers has been a huge “wake up” call, JSW Group’s Parth Jindal on Thursday announced that his company has pledged to bring down $400 million import bill from China to zero in two years.

“The unprovoked attack by the Chinese on Indian soil on our brave jawaans has been a huge wake up call and a clarion call for action – we JSW Group have a net import of $400mn from China annually and we pledge to bring this down to zero in the next 24 months #BoycottChina,” Jindal tweeted.

The announcement came amid nationwide outrage against China after 20 Indian soldiers were killed in a violent face-off in Ladakh’s Galwan valley with Chinese troops when they attempted to unilaterally change the status quo during the de-escalation.