Future of Indian steel exports
In 2020, India replaced Japan to become the second-largest steel producer in the world due to several factors such as technological advancements, government policies, growing demand, abundant natural resources, etc. China remains the biggest steel manufacturing nation accounting for 57% of world steel production.
The performance of the Indian steel industry in 2022 is a bright spot in a bleak global picture brought on by inflation, an impending recession and the European energy crisis. India's crude steel production in FY22 was 120 million tonnes (MT), up from 102 MT in FY21. Economic work and access to raw materials such as iron ore fuelled the surge in production.?
A Hiccup in Growing Exports?
India's growth in steel production has had a significant impact on its exports which surged zoomed increased by 25% over the previous fiscal. The rising production capacity allowed Indian steel companies to meet domestic and international demand, along with competitive prices.
领英推荐
The steel industry is excited about the growing steel exports and plans to capitalise on it. Export demand increased in January based on industry trends, with shipments rising since June 2022. Although the government's decision to withdraw 15% export duties on iron ores and steel has aided the sector, recent government data showed that from April 2022 to February 2023 period, India exported 109.35 MT of finished steel, 52% less than it did in the same period a year prior.
Rebuilding Turkey to Spur Demand
Demand increased in Turkey as the country looks to rebuild after a devastating earthquake in February. Industry leaders have said that all these orders will play a key role in pushing up Indian steel export numbers. Anil Chaudhary, the former CMD of Steel Authority of India Ltd, focuses on the cost competitiveness of Indian steel because of a price differential of $70 or more in iron ore in the national market over the international one.