India: Bulk HRC exports hit 6-m low in May; mills focus on domestic market

Indian exports of hot-rolled coil (HRC) steel witnessed a significant drop in May 2024, according to bulk vessel line-up data compiled by BigMint (excluding container and road transport). HRC exports fell by a substantial 35%, reaching a total of only 217,876 tonnes (t) against 3,37,744 t in April 2024. This represents the lowest monthly export volume in six months, after reaching at 40,500 t levels in November 2023. Moreover, the same decreased sharply by 55% y-o-y against 480,365 t in May 2023.

Why HRC export volumes fell? 1. Limited HRC export allocations: Indian steel mills prioritised the domestic market over exports and had limited export allocations. In addition, realisations in the domestic market were higher compared to exports. 2. Maintenance shutdown: Planned maintenance shutdowns at Indian mills, particularly hot strip mills (HSMs), halted HRC export