Steel industry prioritises exports amid low domestic demand - but it comes at a cost

The domestic steel industry in India has for the last two months increased its focus on exports to compensate for the steep contraction in demand in the domestic market but it comes at a cost as exports fetch almost 15 per cent lower realisation.

In the month of April, when the country was in a complete lockdown mode, exports accounted for an all-time high of 28 per cent of finished steel production in the country. While Europe remains one of the major destinations for shipments out of India - it had a share of close to 20 per cent in FY 2020 - other markets like the UAE, Vietnam and China together contributed 64 per cent to the total finished steel exports in April.