Steel imports have doubled in April: Roongta

May 18, 2010: The chairman of Steel Authority of India Ltd (SAIL), S.K. Roongta, yesterday said that till now there have been no clear signs of dumping of steel to India, but there has been a significant jump in steel import to the country in the month of April.

"In April, steel imports stood at around 1.0 to 1.1 million tons (mt), which is almost double of the average monthly import of around 5,00,000 to 6,00,000 tons. This is a very important development and worth taking note of," added Roongta.

India generally imports high-grade hot rolled products from China, Russia and some other countries, our analysis shows.

Meanwhile, speaking about the expected demand growth, Roongta said, "As per WSA figures, India's demand is likely to grow by 14% this year. Although this is too optimistic, it is surely achievable," he added.

When asked about the possible price correction post the recent economic turmoil around Greece and monetary tightening in China, Roongta explained that steel prices are already down by about $50 to $70 a ton from highs witnessed in March and in the middle of April.

"Steel prices have already somewhat reacted in the last 2-3 weeks from their peak as price is a very much factor of demand and supply. But there has been improvement in offtake as well. Now one needs to see whether much of this offtake was on account of inventory building or increase in consumption," Roongta explained.

However industry experts are of the opinion that if China continues with its current production level, and the possible further monetary tightening happens, then it might impact steel demand in the country. This might ultimately lead to further price correction in the short to medium term.

Source: Steel Insights Daily