Indian steel exports fall in June on weak global prices

Indian steel exports fell by 21pc on the year to 299,000t in June as weaker global steel prices prompted Indian mills to cut back on export volumes.

But shipments are likely to show an uptick this month, with Indian mills reducing their export offers for hot-rolled coil to $508-510/t cfr Vietnam.

Three major Indian integrated mills already booked around 50,000t in the first week of July for August shipment.

Indian steel demand grew by 6.4pc on the year in June to 8.77mn t, while consumption during April-June increased by 6.8pc to 25.2mn t, according to the steel ministry.

Steel demand typically shows an uptick in April-June as more orders are placed in the first quarter of the financial year. Demand seasonally declines during the July-September monsoon months because of a slowdown in construction activity and disruptions caused by flooding.

India's 2019-20 fiscal year started on 1 April.

India's total crude steel output during April-June increased by 3.4pc on the year to 27.72mn t.

Steel imports fell by around 11pc from a year earlier to 604,000t in June, but were higher by 13pc on a month-on-month basis.

Import bookings from Japan and South Korea in the first week of July were at $530/t cfr Mumbai, down from the Argus-assessed domestic ex-mill price of 39,500 rupees/t ($576/t).

Indian mills have appealed to the government to impose a 25pc safeguard duty on steel imports, with a decision likely to be announced this month.