India turns net steel importer in July

India turned net steel importer in July as exports plunged to a three-year low, weighed down by the 15pc export tax.

Imports of finished steel in July rose by 8.4pc on the year to 444,000t, provisional data from the steel ministry's Joint Plant Committee show, while exports declined by 75pc on the year and by 41pc on the month to 380,000t.

This is the first time since January 2021 that the country's finished steel imports have exceeded exports. July exports are also the lowest since June 2019. Finished steel comprises alloyed and non-alloyed steel.

Finished steel exports during April-July dropped by 49.3pc on an annual basis to 2.57mn t, while imports during the same period rose by 3.1pc to 1.62mn t.

The 15pc export duty on steel products imposed by the government in late May has cut down shipments owing to unviability and weak international demand. Imports on the other hand have recently picked up, especially from Russia, as cheaper steel has piqued domestic buyers' interest.

Most of the imports are regular like automotive steel, Api coils and plates, a trader said, adding future imports can be higher as cheaper steel, which is booked, arrives in the country.

Exports during the first half of 2021-22 had soared as the second wave of Covid-19 had upended domestic demand, prompting mills to increase shipments.

Production of finished steel rose by 9.8pc on the year and by 3.1pc on the month to 9.66mn t in July, while consumption rose by 14.1pc on the year and by 6pc on the month to 9.17mn t.

April-July finished steel output rose by 9.3pc against the previous year to 38.55mn t, while consumption rose by 10.6pc to 36.53mn t.

The country's crude steel production in July rose by 2.2pc on the year and seldom changed on the month to 9.97mn t. Hot metal production fell by 4pc against the previous year to 6.38mn t, while pig iron production declined by 4.7pc on the year to 459,000t.

Crude steel production in April-July rose by 8.5pc on the year to 40.9mn t and hot metal output climbed by 1.9pc on the year to 26mn t, while pig iron production fell by 7.9pc to 1.94mn t.

By Sumita Layek and Deepali Sharma