Steel imports dip 31% in FY'14 to 5.44 MT

NEW DELHI: India's steel imports declined by a whopping 31.3 per cent last fiscal to 5.44 MT due to subdued economic growth and exchange rate volatility.

" Import of total finished steel showed a southward trend, declining by 31.3 per cent year-on-year in April-March period of 2013-14 at 5.445 MT," Joint Plant Committee (JPC), a unit of the steel ministry, said in a report.

Imports were down in March by 34.2 per cent to 0.437 MT compared to the same month a year ago.

"Such trends were driven by factors like slowdown in domestic economy, exchange rate volatility, relative prices, global downswing and bilateral agreements among others," JPC said.

Lower imports helped India remain a net exporter of total finished steel in 2013-14.

Exports were up by 4.1 per cent last fiscal at 5.59 MT. JPC said rupee volatility, different economic conditions, mismatched demand-supply situation during the period helped domestic firms ship more steel abroad.

Indian steel makers produced 85 MT finished steel, up 4.1 per cent last fiscal ended March 31, helped by a 9.5 per cent growth in production by main producers such as SAIL, RINL and Tata Steel.

However, steel consumption growth rate hit the lowest in four years at 0.6 per cent to 73.93 MT in 2013-14 impacted by slower expansion of the domestic economy and lower imports.