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India’s steel imports plunge by 41% in May

07 Jun 2016 Evaluate

India's steel imports falling for the second month in May, of the current financial year plunged to the lowest level in last 14 months, after the government imposed restrictions to stop purchases of cheaper overseas supplies. According to the data by Steel Ministry’s Joint Plant Committee (JPC), India, the world's third-largest steel producer imported 0.546 million tonnes (MT) of finished steel in May, nearly 41 percent lower than the same month of last year.

As per the data released by JPC, the imports were down 17 per cent sequentially, compared to that in April 2016. In April too, steel imports were down by 15.5 per cent year-on-year at 0.654 MT. In May 2016, total finished steel output was lower by 0.9 per cent to 8.28 MT compared to the same period last year. In April-May, steel production grew by 2.4 per cent to 15.97 MT. Steel demand in May 2016 was higher by 4 per cent to 7.56 MT against May 2015 and was up by 31 per cent over April 2016.

The report further highlighted that the export of total finished steel in May 2016 was up by 6 per cent to 0.38 MT over May 2015 and was higher by 23 per cent over April 2016. In April- May period, exports of total finished steel were down by 11.7 per cent at 0.689 mt over the corresponding same period previous year.

Steel imports are on a decline following a number of steps by the government to check cheap shipments of the commodity from countries like China amid demand slowdown. In February, the government imposed minimum import price restrictions on steel products to check inward shipments, besides imposing safeguard duties last year.


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