India's rolled steel exports dropped significantly in May, reaching their lowest level in six months at around 0.5 million tons. This represents a 24% decrease compared to April's exports of 0.66 million tons.
Several factors contributed to the decline in exports. Indian steel mills prioritized supplying the domestic market, leading to limited export quotas. Additionally, scheduled maintenance shutdowns at hot strip mills, particularly for 15 days, disrupted exports of hot-rolled coils (HRC) to Southeast Asia and the Middle East during a period of weak global demand.
The European market, a key destination for Indian steel, also witnessed cautious buying behavior due to recently announced protective measures. Competitive pricing from China further pressured Indian exports.
Despite the decline in exports, India's domestic steel consumption remains positive. The Indian credit rating agency ICRA revised its forecast for domestic steel consumption growth in FY2024/2025 upwards to 9-10%, reflecting the recent growth trend of 11.3% between February and April 2024.
