India strengthens steel and iron ore supplies in November

India’s steel exports in November increased by 71% on an annual basis to approximately 0.4 million tons. However, this figure fell by 10% compared to October, revealing the stagnation in international demand. During the same period, steel imports decreased by 32% on an annual basis to 0.75 million tons.

In the April-November period, India maintained its position as a net steel importer. During this period, imports increased by 27% on an annual basis to 6.5 million tons, while exports decreased by 24% to 3.2 million tons. Attempts by some importers to exceed quality standards by making minor changes in steel grades were prevented by regulatory authorities. In this context, many import applications were rejected due to non-compliance with the set standards.

Strong demand was noted in the domestic market. In the April-November period, steel consumption in India increased by 12.3% on an annual basis to 98 million tons, while finished steel production increased by 5% to 95 million tons. This situation showed the strength of local demand despite the difficulties in the export market.

India’s iron ore imports in November reached 1.19 million tons, the highest in the last six years. This figure represents a significant increase compared to 0.47 million tons in October and 0.84 million tons in November 2023.

Australia was the country that supplied the most iron ore to India with 0.77 million tons, while Oman and Malaysia shared the second place with 0.21 million tons each. However, it was stated that a large portion of the ore coming from these countries was processed material from Brazil.

JSW Steel, which completely undertook the iron ore imports, stood out as the sole importer during this period. The main reasons for the increase are limited local supply due to long monsoons and strong demand. The decline in local production created a supply gap that is being addressed through imports. In addition, logistics problems, quality problems of local ore and global price fluctuations were among the factors supporting imports.

Despite the increase in iron ore imports, this amount is still limited compared to India's total consumption. It is stated that new import orders have slowed down with the recovery of local production after the monsoon and the increase in global ore prices in December.