India's steel consumption decreased in September

In September, India witnessed an 18% surge in its consumption of finished steel, primarily driven by robust demand stemming from government-backed infrastructure initiatives. Concurrently, exports of finished steel plummeted by 73%, reflecting weakened international demand. The total consumption of finished steel reached 11.2 million metric tons, marking an 18% annual increase, while production expanded by 13% to 10.9 million metric tons.

This upswing in domestic steel demand can be attributed to vigorous infrastructure projects taking place throughout the nation, many of which are racing against the clock in preparation for next year's general elections. In contrast, the international steel market faced headwinds due to sluggish economic activity and elevated interest rates, which suppressed global steel consumption.

Notably, September saw finished steel exports nosedive to 157,000 metric tons, hitting a multi-year low. Moreover, during the April-September period, exports registered a 10% decline compared to the previous year, totaling 3.23 million metric tons. Indian steel mills refrained from actively participating in the export market last month due to buoyant domestic prices and strong domestic demand.

In a contrasting trend, finished steel imports dwindled by 24% compared to the previous year, amounting to 381,000 metric tons, while imports for the April-September period rose by 13% to 3 million metric tons.

India's crude steel production also experienced notable growth, surging by 17% year-on-year to reach 11.4 million metric tons in September.