As it aims to take advantage of record high steel prices, India’s Jindal Steel and Power Ltd expects demand caused by supply cuts from Russia and Ukraine to expand exports to up to 40% of sales from
25% currently. “We used to export approximately 25%,” JSPL Managing Director V R Sharma said. “In 2-3 months, we will be exporting about 35-40% so that we can enjoy a part of better prices.”
JSPL competes with Tata Steel, JSW Steel (JSTL.NS), state-run SAIL (SAIL.NS), and ArcelorMittal Nippon Steel India as India’s fifth largest crude steel manufacturer in 2021. “We are already booked till April 30,” Sharma said, adding that “we will be placing orders for the following one month until the 30th of May.”
Industry experts expect Indian and Chinese steel mills to ramp up shipments to Europe to make up for supply shortages from Russia and Ukraine.
According to Steelmint, an Indian research and analysis business, India exported 20.63 million tonnes in 2021, mostly to Italy, Belgium, Nepal, and Vietnam.
“The opportunity for Indian mills is that they can deliver a large quantity, which will significantly increase their profit margins,” Sharma said in an interview.
However, Alain Legrix de La Salle, director of sales at AMNS India, told an industry conference on Monday that China will be “far more prominent on the export market due to their poor domestic demand.”
