6 February 2024 – Indian steel exporters are facing growing export problems and have almost halved their export volume since 2020. Export taxes, logistics problems and proximity to Russia are making Indian steel and stainless steel increasingly unpopular. And the US companies have so far clearly exceeded analysts’ expectations for Q4 2023.
Indian steel exporters face growing problems
Indian steel and stainless steel exporters are facing new difficulties. Just a few years ago, local manufacturers exported 10 to 15% of their annual production. In 2023, following the introduction of export taxes on steel and stainless steel by the Indian government, the export share was only 6.5%.
Indian logistics costs explode
The crisis in the Red Sea has now hit Indian steel exporters particularly hard and caused their logistics costs to explode. This is probably due in part to Indian shipping lines trying to capitalize on the situation in the Red Sea.
Jindal Stainless has to lower its forecast
Jindal Stainless has already had to revise its forecast for the current financial year downwards. Other manufacturers are likely to follow suit, even if they are currently benefiting from robust Indian demand.
India’s affinity with Russia scares off customers
While Indian steel manufacturers are looking to China with concern and are lobbying their own government for new import restrictions, there has been virtually no criticism of the sharp rise in steel imports from Russia.
Nevertheless, India’s close trading partner Russia is probably already concerned about the situation, as many Russian steel exports now go to India and no longer to the European Union. And that the trading partners in the EU and also in the United States are not happy about India’s proximity to Russia could further depress export figures in India.
US corporations exceed expectations
US corporations are currently publishing their results for the last quarter of 2023 and have so far clearly exceeded analysts’ expectations.
So far, reported profits have exceeded expectations by an average of six percent, while sales have increased by 0.7 percent. It is particularly positive that many companies have exceeded forecasts. Analysts currently expect earnings growth of around 10% for US companies in 2024.
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