Latest data showed that India’s production of finished steel in April-July 2020 fell by 39.8 percent to 21.152 million tonnes from 35.156 million tonnes in April-July of 2019 while steel consumption fell 43.3 percent to 18.909 million tonnes as against 33.346 million tonnes in the same period of the preceding fiscal. During April-June 2020, India's total exports of steel stood at 4.641 million tonnes as against 1.933 million tonnes in the year ago period, while imports reduced by 42 per cent to 1.506 million tonnes during the period under review from 2.597 million tonnes a year ago.

 

Of the 4.64 million tonnes of total steel exports, Vietnam and China bought 1.4 million tonnes and 1.3 million tonnes of steel respectively, accounting for 80% of HR coil export. Vietnam has been a regular buyer of Indian HRC steel, but China’s emergence as a leading buyer, is rather surprising. Chinese stimulus to support post COVID19 economic recovery has resulted in unprecedent surge in steel demand in China resulting in USD 50-100 improvement in Chinese domestic steel prices luring buyers for cheaper imports.