Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian state-owned steelmaker, Rashtriya Ispat Nigam Limited (RINL) expects its steel exports to reach 552,000mt by the end of Q1 FY 2021-22. The volume also includes orders of over 300,000mt for steel exports in June, according to a company tweet. Products exported include billet/bloom, pig iron, and wire rod.


The company has exported 252,000mt of steel in the first two months of FY22 (April-May), up by 33pc compared to the prior year. Steel exported was at 146,000mt in April and 105,000mt in May.


The company’s crude steel production increased by 126pc to 919,000 in April-May compared to the prior-year period. While total saleable steel sales were up by 90pc to 737,000mt in the period. Of the total, domestic sales surged by 146pc to 485,000mt, while the remaining was exported.


In FY21, the company had exported around 1.3mn mt, up 261pc higher than the preceding year.


Indian steel mills continue to remain active in the steel export market as demand remains impacted in the domestic market. The second wave of the COVID-19 pandemic impacted economic activities amid strict social distancing measures in April and May.


Despite the relaxation in lockdown norms by state governments in June, domestic demand is yet to reach steelmakers’ expectations as the monsoon season has resulted in 30pc lower labour availability at construction sites.


RINL’s daily hot metal production from three blast furnaces is around 17,500mt, with capacity utilization at around 85-90pc. Each blast furnaces has a capacity of 2.5mn mt at the Visakhapatnam plant.

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