Growth in demand turns India into net importer of iron, steel

India, home to ample iron ore resources and the third biggest crude steel producer, has paradoxically turned into a net importer of iron and steel.   During April-September, the country imported iron and steel valued at $5.33 billion, exceeding its exports worth $4.22 billion. This has reversed the trend of the country being a net exporter of iron ore and steel products for the past two consecutive years. In the last financial year, exports of iron and steel were valued at $11.24 billion, overshooting the $10.43 billion in imports. Between 2009-10 and 2017-18, the country's exports of iron and steel logged a CAGR (compounded annual growth rate) of 12.07 per cent, states a report by the Indian Brand Equity Foundation (IBEF), quoting figures sourced from the Ministry of Commerce. According to the report, the country has turned into a net importer of iron and steel due to robust demand in the manufacturing sector and rise in infrastructure projects under implementation. The country's transition into a net importer of steel is despite the buoyancy in domestic crude steel output. Crude steel production in FY18 reached an all-time high of 102.34 million tonnes (mt), increasing 4.5 per cent year-on-year (y-o-y). A forecast by the World Steel Association projects Indian steel demand to grow 5.5 per cent in calendar 2018 to 92 mt and six per cent in 2019 to touch 97.5 mt. By 2019, India is also poised to dislodge the US as the second largest steel consumer, the association predicted.