Rising global prices, muted local demand boost steel exports
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Analysts estimate the share of exports to rise in the first half of FY21, and will increase by 12-16% in FY 22, due to widening spreads between export and domestic realisations.
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While exports of finished steel in the first quarter of FY21 were driven by lacklustre domestic demand due to pandemic-led lockdowns the surge in the last quarter was led by higher export realisation.
MUMBAI: India s primary steelmakers have increased their share of exports in the fourth quarter of FY21 ending March, amid rising international steel prices, combined with a slight de-growth in domestic demand during the January-February period.
Steel shipments got off to a good start in 2021 by rising 5.3% from December to January, the most recent month for which data was available, but were still down by double digits year-over-year.
U.S. steel mills shipped 7.42 million tons of steel in January, which was up 5.3% from the 7.04 million tons shipped in December but down 13.1% as compared to the 8.53 million tons shipped during January 2019, according to the American Iron and Steel Institute.
U.S. steel mills, including those along the south shore of Lake Michigan in Northwest Indiana that account for nearly half the nation s integrated steelmaking capacity, shipped a total of 81 million tons of steel in 2020, a 15.8% decline as compared to shipments of 96.1 million tons the previous year.
The finished steel exports in January 2021 totaled 0.58 million tonnes, down six per cent month-on-month and 16 per cent year-on-year as producers focused more on domestic sales
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