(MENAFN- KNN India) New Delhi, May 3 (KNN) India's steel exports to Europe soared to a five-year high of 3.3 million tonnes in the fiscal year 2023-24, a remarkable 65 per cent year-over-year increase and nearly doubling from fiscal 2019-20 levels.
However, this surge in European exports masks challenges Indian steelmakers face in other key markets.
While shipments to the European Union were buoyed by factors like sanctions on Russia and reduced competition from China, Indian mills lost ground in the United Arab Emirates and Southeast Asia due to intense Chinese export competition.
India's total steel exports grew 11 per cent year-over-year to 7.5 million tonnes in 2023-24, driven primarily by demand from three European nations - Italy (1.7 million tonnes), Belgium (0.85 million tonnes), and Spain (0.7 million tonnes).
"Supported by re-stocking and a weak dollar, domestic prices in the EU rose after the euro strengthened against the US dollar," said consultancy BigMint. "This ended the downward trend in European prices since January."
However, Indian mills struggled to compete with cheaper Chinese exports in Vietnam and the UAE. Exports to the UAE plunged 30 per cent to 0.5 million tonnes, nearly halving over five years. Vietnam, once India's top steel export destination, has now become a key seller thanks to re-routed Chinese supplies.
"Chinese steel is being re-routed into India through Vietnam, while our exporters cannot match China's pricing," a Steel Ministry official stated, terming it a major concern.
Geopolitical tensions also disrupted trade flows, with Indian mills unable to export to Turkey as before.
Looking ahead, overseas sales to Southeast Asia and the Middle East remain sluggish amid weak demand. Indian mills prioritise the domestic market and withhold export offers due to uncompetitive pricing against Chinese and Japanese suppliers.
(KNN Bureau)
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