India's steel consumption and exports both fell in November

According to preliminary data from the Joint Plant Committee (JPC), domestic consumption of finished steel fell 3% month-on-month in November to 8.5 million tons. Due to deteriorating air quality, the Indian government banned construction activities in Delhi and the National Capital Region. The southern states of India, including important industrial centers such as Tamil Nadu, Andhra Pradesh, and Karnataka, suffered rain and floods last month. Due to the drop in international steel prices, India's purchasing activities also slowed down in November. In addition, local customers began to submit bids for imported materials in late November, and in the last quarter (Jul.-Sep.) they prefer to book domestically. From November to December, Indian steel mills had to lower their hot-rolled coil quotations, which made buyers more cautious when placing new orders.

The export volume of finished steel continued to decline in November. Due to increased competition with CIS and Chinese sellers, shipments fell by 32% from last month to 716,000 tons. Transportation issues also affected the sales of Indian steelmakers last month. An Indian long products manufacturer stated that Indian Railways prioritizes the supply of coal over the transportation of other goods, which has resulted in "Indian Railways cannot provide on-demand."

Crude steel production in November fell by 2% month-on-month to 9.63 million tons after a moderate increase in October.

In the first eight months of this fiscal year (April to November 2021), India's steel production was 76.44 million tons, indicating an increase of 21% year-on-year. According to data from the Joint Plant Committee (JPC), finished steel consumption increased by 20% to 66.37 million tons, while exports increased by 24% to 9.53 million tons.