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Indian steelmakers face an inventory build-up despite increased local consumption due to rising imports. Imports surged by 41% in the first half of 2024-25 while exports dropped by 35.9%. The steel ministry is closely monitoring the situation as high inventory remains a concern for the sector. Excess monsoon rain has also impacted steel demand from the construction industry. View More
New Delhi: Indian steelmakers are grappling with inventory build-up despite higher consumption as imports continue to flood the domestic market , prompting the steel ministry to flag the issue and monitor the situation closely, said people familiar with the matter. "The high steel inventory is a matter of concern," said a senior official, who did not wish to be identified. According to industry estimates, domestic producers have been sitting on steel inventory worth ₹89,000 crore since the start of 2024-25. The stocks have remained largely unchanged at around 14 million tonnes (mt) at September end, up 13.01% from 13.67 mt a year ago, showed the data compiled by the steel ministry. Agencies MarketingDigital Marketing Masterclass by Neil PatelBy - Neil Patel, Co-Founder and Author at Neil Patel Digital Digital Marketing GuruView Program LeadershipBusiness Storytelling MasterclassBy - Ameen Haque, Founder of StorywallahsView Program FinanceAI and Generative AI for FinanceBy - Hariom Tatsat, Vice President- Quantitative Analytics at BarclaysView Program Office ProductivityMastering Microsoft Office: Word, Excel, PowerPoint, and 365By - Metla Sudha Sekhar, IT Specialist and DeveloperView Program MarketingFuture of Marketing & Branding MasterclassBy - Dr. David Aaker, Professor Emeritus at the Haas School of Business, UC Berkeley, Author | Speaker | Thought Leader | Branding ConsultantView Program Artificial Intelligence(AI)AI and Analytics based Business StrategyBy - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCIView Program Artificial Intelligence(AI)Generative AI for Dynamic Java Web Applications with ChatGPTBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Web DevelopmentAdvanced C++ Mastery: OOPs and Template TechniquesBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program MarketingDigital Marketing Masterclass by Pam MooreBy - Pam Moore, Digital Transformation and Social Media ExpertView Program Artificial Intelligence(AI)Java Programming with ChatGPT: Learn using Generative AIBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Web DevelopmentIntermediate Java Mastery: Method, Collections, and BeyondBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Artificial Intelligence(AI)AI-Powered Python Mastery with Tabnine: Boost Your Coding SkillsBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Web DevelopmentDjango & PostgreSQL Mastery: Build Professional Web ApplicationsBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Web DevelopmentIntermediate C++ Skills: Master Pointers, Structures and File StreamBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program Artificial Intelligence(AI)Basics of Generative AI: Unveiling Tomorrow's InnovationsBy - Metla Sudha Sekhar, IT Specialist and DeveloperView Program The inventory levels have persisted despite a 13.65% year-on-year increase in local steel consumption between April and September to 72.82 mt. Sector watchers say increasing imports and falling exports have significantly contributed to the inventory levels, which have risen after the Covid-19 pandemic. "Higher imports and lower exports have resulted in net import of about 2.4 mt in the first half of the current fiscal. So, while the consumption rate is high, higher net import led to similar inventory levels," said Sumit Jhunjhunwala , sector head - corporate ratings, ICRA Limited . Steel imports in the first six months of 2024-25 increased 41% to 4.7 mt from 3.3 mt a year ago. Exports slumped 35.9% to 2.3 mt from 3.6 mt during this period. "Chinese exports have significantly increased and resulted in higher imports. So, India needs to monitor its import level to see any meaningful reduction in inventory levels," Jhunjhunwala said. Another reason for inventory piling up in the first half of this fiscal was excess rain received during the monsoon impacting steel demand from the construction industry. Nominations for ET MSME Awards are now open. The last day to apply is November 30, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award. (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)