November Steel Exports Fall to Nearly Half While Imports Inflated
Date : December 26, 2011
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At 184,000 tonnes, steel exports in November hit the lowest point this financial year. Imports have surged to 879,000 tonnes, the highest point in the year.
In its latest data published by the Joint Plant Committee, the government body tracking steel in the country, says companies exported 184,000 tonnes in November, which was 203,000 tonnes less, sequentially and nearly half of the exports in November 2010.
Imports, however, shot up sharply to 879,000 tonnes against 279,000 tonnes in the same month last year. Sequentially, imports were up by 519,000 tonnes.
Research Analyst, Elara Capital (India) Pvt Ltd said, "Global steel prices have corrected a lot, but the domestic prices have been firm. Despite the rupee depreciation, it is profitable to import steel and that is why we have seen a spurt in imports."
The steel export in the April-November period has risen 32 per cent. At 241,000 tonnes, April saw the least steel exports. At 879,000 tonnes, November has seen the highest import surpassing July (605,000 tonnes), by close to 50 per cent.
April registered the lowest imports at 330,000 tonnes. An official from a steel company, seeking anonymity, said, "Yes, imports in November went up and have hurt us since we are already reeling with low demand in this period."
He, however, ruled out any price cuts by the domestic steel makers. In April-November, imports have fallen by 20 per cent, or one million tonnes.
Another analyst tracking the sector said, "Steel prices globally have softened by 15-20 per cent, but this hasn't affected domestic prices yet. Although demand is slowing, companies are not ready to cut prices because of the inflated raw material bills."
Domestic production also fell sequentially in November. According to the report, India produced a total of 5.46 million tonnes steel in November against 5.89 million tonnes in October.
The production in April-November, at 46.14 million tonnes, went up 7.9 per cent. Real consumption growth in the given period stood at a mere 3.9 per cent.
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