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Indian Steel Exports Post Unprecedented Rise in 2017

There’s a feel-good story emerging out of India vis-a-vis the steel sector. A recent policy document showed a rise in steel exports in 2017, while a freshly released World Steel Association (WSA) report recorded a growth in crude steel production last year.

The Economic Survey of India 2017-18, a document released just prior to the union budget in India, has said a mix of policy inputs for local steel, the rise in global steel prices and a slew of efforts by the Indian government to protect the domestic steel market from cheap imports had all helped in raising steel exports from India to an “unprecedented” 53% rise during the April-December 2017, during which output rose to 7.6 million tons (MT).

Local consumption itself rose 5.2% during that period to 64.9 MT. Sale of finished steel rose 5.6% to 79.3 MT during the same period, largely because of a boost from India’s core infrastructure sector.

After some loud complaints by local steel bodies and producers, the Indian government raised customs duty and imposed anti-dumping duty. The Minimum Import Price (MIP) was introduced in February 2016, and all these measures had ensured the recovery by domestic producers, the Economic Survey said.

India’s domestic consumption of steel per capita is around 65 kg, compared to global average of 235 kg — a worrisome factor in an otherwise positive growth story for Indian steel. India, however, is pushing for an increase in per capita steel consumption to 160 kg by 2030.

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