India's steel exports in May 2024 fell to the lowest level in six months, with the total volume amounting to about 0.5 million tons, a 24% decline from the 0.66 million tons exported in April. This significant drop in exports is attributed to various factors.
Flat products accounted for approximately 82% of total exports, with long products and semifinished products amounting to about 50 thousand and 40 thousand tons, respectively. The European Union remained the primary export destination for India, but the total supply of steel products to the bloc in May fell by 40% compared to the previous month, exceeding 210 thousand tons.
Shipments to Nepal and the United States increased during the period, while exports to the UAE and Turkey declined. Local steel mills prefer the domestic market to exports and have limited export quotas, which also contributed to the decline in exports. Scheduled maintenance shutdowns at the plants, particularly at hot strip mills, halted HRC's exports to Southeast Asia and the Middle East.
Additionally, Indian exports were affected by a slowdown in global steel demand, buyer caution in the European market due to new protective measures announced, and competitive Chinese prices. The Indian credit rating agency ICRA has revised its forecast for domestic steel consumption growth in India to 9-10% in FY2024/2025, up from 7-8% previously. Domestic steel consumption in the country increased by 11.3% between February and April 2024.
