India, being world’s second largest producer of steel yet becomes one of the biggest player in steel imports.It appears that India have joined the list of countries who import more than they export. According to a report by the Steel Ministry, India has become a net importer of steel for the first time in the current fiscal year, a total of 5,87,000 tonnes of steel were imported, while exports accounted for 5,13,000 tonnes.
Year-on-year comparisons revealed shocking figures imports had increased over 30 percent, while exports had declined. This disparity in supply and demand was mainly attributed to the influx of lower-priced steel from China.As a result Imports of steel outnumbered exports by 74,000 tonnes during the specific month.
For the fourth time in just one year India has transitioned into a net importer of steel. Statistics from the last year show that imports of steel amounted to 4,44,000 tonnes while exports had fallen to 3,80,000 tonnes.
The past year has seen a downward trend in exports due to government policies aimed at controlling domestic inflation. However, the recent month of July saw a surprising increase in steel exports - but it may not be what it seems. Despite this seemingly impressive rise in exports, the numbers actually remain relatively steady when compared to June of this year. The weak orders and global recessionary trends have kept the number around 500,000 tonnes for both months.
Although, India continued to be a net steel exporter during the period from April to July, with total exports of 25.63 million tonnes and imports of 19.89 million tonnes.
India’s recent transition into a net importer of steel brings challenges in maintaining its competitive edge in the global market. Although export figures remain relatively steady, imports from China are becoming increasingly difficult to match. The country must develop strategies that promote innovation and sustainable production of quality steel to maintain its position as a major supplier of steel and prevent its continued decline in the international market.
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