Indian steel makers do net exporters business in China in April-August: CRISIL

Indian steel makers do net exporters business in China in April-August: CRISIL

Mumbai: According to Crisil Research, due to weak domestic demand due to the COVID-19 epidemic, Indian steel makers first turned to net exporters in China during April-August.
The rating agency said that between April and August, with 69 percent of semi-finished steel and 28 percent of steel ending there, India turned to China for the first time as a net exporter of steel.
Primary steel manufacturers exported 60–80 percent of their total production to various destinations between April and August this year, with China leading the pack.
The agency said that despite a steep 38 percent drop in domestic demand between April and August, crude steel production was down by 27 percent.
The production decline was less severe for export-oriented primary manufacturers, with a drop of about 20 percent, compared to a 40 percent drop in the secondary steel segment.
However, exports grew 400 percent year-over-year in June, peaks have since declined, easing domestic lockdown and some improvement in economic activity, reclaiming domestic demand for steel. said.
For China, supply disruptions and elevated global iron ore prices led to higher steel imports in these months, noting that it imports more than 90 percent of its iron ore requirement.
“While global steel prices were on a slide from the end of June to February, iron ore prices rose due to supply side disruptions, particularly in Brazil and Australia. Iron ore prices last coking coal prices last 25 quarters The agency said it was motivated to process them to increase the port-based capacities in China and to increase the cost of iron ore to pursue them.
According to Crisil, more than two-thirds of Indian semi-finished exports were to China in April-August.
“Despite iron ore prices, global steel prices fell to a low of $ 409 per tonne in April, the lowest since October 2016, given weak demand and limited export opportunities. But in China, especially the current quarter The decrease in demand led to a rise in the nine months of steel prices in August at $ 502 per tonne.
Crisil Research expects global steel prices to be $ 460-490 per tonne or 3-5 percent lower.
The note noted, “Global steel prices will see a 3-5 percent year-on-year decline in calendar 2020, but domestic prices are expected to fall by only 1-2 percent, adding that anti-dumping duties Applicable. ”

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