India remains net steel importer in January

India remained a net importer of steel for the fourth consecutive month in January, with exports climbing to a seven-month high on increasing international demand.

Finished steel imports last month rose by 33pc from a year earlier to 596,000t, while April-January imports were up by 28pc to 5mn t, provisional data from the steel ministry's joint plant committee (JPC) show. Finished steel comprises alloyed and non-alloyed steel.

Most hot-rolled coil (HRC) imports in January flowed from Vietnam with 75,800t, followed by Japan with 69,400t, South Korea with 42,900t and Russia with 14,500t, according to Argus' calculations. Russian HRC imports during April-January were 201,000t, while imports from Vietnam were 96,900t and Japan 69,400t, JPC data show.

Firmer demand and higher prices of steel in India compared with other steel consuming nations last year made India an attractive destination for international steel exporters. But increasing global demand and prices means the inflow of steel will taper out in the coming months.

India's steel exports have also picked up following the removal of 15pc export duties in November, with rising demand propelling shipments last month to their highest level since June 2022.

Exports of finished steel in January at 588,000t was lower by 28pc from a year earlier but higher by 33pc from the previous month, according to JPC. April-January exports were still down by 52pc against the previous year to 5.3mn t.

Belgium was the top export destination for finished steel in January with 109,100t, followed by Italy with 103,700t and the UAE with 74,400t, according to Argus' calculations.

India's galvanised sheets and coil exports at 194,700t during January were higher than HRC exports at 175,500t, JPC data show, because of higher demand for value-added steel from European countries.

Production of finished steel last month rose by 4pc from a year earlier to 10.7mn t, while consumption increased by 4.4pc to 10.6mn t. April-January finished steel production rose by 6.5pc to 99.5mn t, while consumption rose by 11.6pc to 97.1mn t.

Crude steel production in January was unchanged from a year earlier to 10.9mn t, while April-January output rose by 4.6pc to 103.5mn t.

By Sumita Layek