Indian Steel Export Prices Dropped to Lowest Levels

SEATTLE (Scrap Monster): The Indian steel export prices fell to lowest level in the world. The shipments to outside countries compensated for the dip in domestic demand on account of lack of activity due to Covid-19 pandemic.

The export prices of steel from India stood at $750 per tonne during the last month of the current year. This is the lowest level globally, lower than the average export price of $785 per tonne in the Commonwealth of Independent States (CIS). Meantime, the Japanese and South Korean steel export prices stood at $805 per tonne. The highest export prices of $1,789 per tonne were seen in the U.S.

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The domestic demand remained lackluster. The margins of steel sector are likely to be squeezed by rising coking coal prices in the ongoing quarter ending December 2021. However, increased exports made up for weak domestic market. As per estimates, the country sold approximately one-fourth of the total output in the international market. The proportion of exports in total steel output is forecast to rise further in the upcoming quarters.

The policy actions by the Chinese administration in support of the reeling sectors, especially real estate sector, will result in rebound in domestic demand in China. The world’s largest consumer and producer of steel is likely to witness balance between demand and supply.