Indian steel exports increased by 36% in December to help local producers clear inventories even as domestic consumption is witnessing a decline in wake of increasing slowdown in economic activity at home.
International prices have finally been stable for some time now, which helped Indian exports pick up. India exported a total of 229,000 tonne of steel in December compared with 180,000 tonne in November.
One of the factors helping exports was withdrawal of 15% exports duty on long products items like, iron and steel ingots, bars and rods etc that was imposed early in the fiscal to help control sharp hike in domestic prices. Export duty on flat products had already been rolled back earlier.
Analysts expect domestic steel prices to remain firm now in wake of stable international prices and recovery in exports. Prices had declined sharply in last couple of months of 2008 as steel demand declined in the country due to slowing economy.