India becomes a net importer of finished steel products in the fourth quarter of 2022
According to temporary data released by the Joint Factory Council of India (JPC) on January 6th, India’s finished steel imports exceeded exports for the third consecutive month in December 2022, making the country a net importer of finished steel in the fourth quarter of 2022.
In December 2022, the import volume of finished steel products from India was 653000 tons, a year-on-year increase of 65.3%; The export volume was 442000 tons, a year-on-year decrease of 44.6%. On a month on month basis, the import volume of finished steel products increased by 8.8% in December, while exports surged by 30.8%. The significant month on month increase in exports is likely due to India’s active search to increase exports after canceling the export tariffs on raw materials and steel products that it began imposing on May 22, 2022, on November 19, 2022. In addition, India will include steel exports in its RoDTEP (Export Product Tariff Reduction) program starting from December 15, 2022, to incentivize exports.
The data shows that the import volume of finished steel products from India in the fourth quarter of 2022 was 1.85 million tons, a year-on-year increase of 70.1%; The export volume was 1.14 million tons, a year-on-year decrease of 55.7%.
Indian market participants are optimistic about the prospects of exporting their own steel products to Europe. Indian traders have mentioned that Indian steel producers are willing to export to overseas markets at lower prices to ensure support for domestic market prices. India has begun negotiations with Bangladesh on a free trade agreement. The Indian government is already discussing strengthening economic ties with many countries. Earlier in 2022, India signed a free trade agreement with Australia and is currently negotiating similar agreements with Europe, the United Kingdom, Canada, Gulf Cooperation Council countries, and Israel. Considering the growth of India’s steel production capacity, a free trade agreement may help expand the country’s exports of steel products.
It is also reported that the Indian government has approved the National Green Hydrogen Program and will provide 19.4 billion rupees (approximately 2.4 billion US dollars) in funding for the program, with the vast majority of the funds going to support domestic electrolytic cell construction and green hydrogen production. According to the Indian government’s plan, green hydrogen projects will attract a total investment of 8 trillion rupees (96.6 billion US dollars) by 2030, mainly from private sector funding.
