Lower shipments of iron & steel dragged down engineering exports in April by 3.2%
growth in the last four months, India’s engineering exports declined in April 2024 by 3.2% to US$8.67 billion primarily due to lower shipments of metals, especially iron & steel and copper.
Lower shipment of steel was mainly witnessed in Italy, Nepal, UAE, Netherlands, USA, China, and South Korea among others.
Excluding the export of iron and steel, engineering exports recorded a growth of 2.61% during April 2024. A substantial 36.41% decline in exports of Iron and Steel therefore was the single most important reason behind the year-on-year decline in overall engineering exports during April 2024.
«The decline in steel exports can be attributed to low international demand in major markets and an increasing trend of nearshoring amongst developed markets. There is also a significant decline in Chinese steel demand which is encouraging Chinese exports at a much more competitive price compared to India,» said Arun Kumar Garodia, Chairman, EEPC India, in a statement.
As per S&P Global, China's finished steel exports hit the highest level in six years at 90.26 million mt in 2023, up 36.2%, or 23.98 million mt, from 2022. Other factors include slow pick up of global demand since the trade contraction of 2023, tightening interest rates due to inflation in many major markets, and logistics issues such as the Red Sea Crisis.
«However, the industry is hopeful that global trade will pick up and India’s engineering exports would also get some boost in the coming months,» Garodia stated.
The decline in engineering exports
