STEEL TRADE DEFICIT : ECONOMY

STEEL TRADE DEFICIT : ECONOMY

NEWS: India’s steel trade deficit swells to ₹6,704 crore in the first quarter of FY25

 

WHAT’S IN THE NEWS?

India's Steel Trade Deficit (Q1FY25)

  1. Trade Deficit Overview:
    • Expanded to ₹6,704 crore in Q1FY25.
    • Q1FY24 reported a trade surplus of ₹3,698 crore.
  2. China Competition:
    • Deficit widened by 60% from end-May to end-June 2024.
    • India's steel mills lost key export markets to China.
    • Increased imports from China and Japan.
  3. Import and Export Values:
    • Imports of finished steel: ₹17,341 crore ($2079 million).
    • Exports of finished steel: ₹10,636 crore ($1275 million).
    • Resulting trade deficit: ₹6,704 crore.
  4. Export Volume Decline:
    • Export volumes of finished steel declined by 38% y-o-y to 1.3 million tonnes (mt).
    • Flat steel product exports fell over 40% to 1.096 mt.
  5. European Market Decline:
    • Italy: 46% decline in volume (0.269 mt) and value ($234.7 million).
    • Spain: 56% decline in volume (0.08 mt) and 61% drop in value ($71.5 million).
    • Belgium: 6% decline in volume (0.158 mt) and 20% decline in value ($136.4 million).
    • UAE: 49% decline in volume (0.08 mt).
  6. Rising Imports:
    • Chinese steel imports increased 40% in volume to 0.572 mt.
    • Japan imports rose 170% in volume to 0.5 mt and 71% in value to $435 million.
  7. Top Sellers:
    • Nepal emerged as a top five seller: 30,000 tonnes, valued at $27 million.
  8. Most Imported Item:
    • Hot rolled coil/strip was the most imported item (0.717 mt).
    • China was the largest import market for India.

 Source :  https://epaper.thehindu.com/ccidist-ws/th/th_international/issues/94005/OPS/GNFD5GP27.1+GACD5I7C5.1.html