As per the provisional data for FY20, India’s steel consumption has hit 100 million tonnes (MT) mark for the first time in the fiscal. India also remained a net exporter of steel with an increase of 31.4 percent; the import of steel was down 13.6 percent with a huge decline in steel import from China at 22 percent in FY20.

India’s crude steel production was down by 1.5 percent and finished steel production was flat at 109.2 MT in FY20 against 110.9MT in FY19. Domestic requirements of steel were met from domestic supply, as a share of imports in domestic consumption remained at low at 6.8 percent in FY20 versus 7.9 percent in FY29.

As global steel prices remained on the lower side due to COVID-19 impact, domestic prices were impacted by local supply-demand imbalance and global trends.

India’s steel export is up by 31.4 percent as it exported 8.3 MT of steel in FY20 against 6.3 MT in FY19, while imports are down by 13.6 percent at 6.7MT against 7.8 MT in FY19. The decline in steel imports from China by 22 percent in FY20, led to an increase in Korea’s steel export, making it a 40 percent share in India’s import, followed by Vietnam at 28 percent.

The trade deficit concerns continue for India, as it imported steel worth Rs 44,683 crore against the export value of Rs 36,726 crores.