India’s Jindal Steel and Power Ltd (JSPL) (JNSP.NS) expects demand created by supply cuts from Russia and Ukraine to boost exports by up to 40% of sales down from 25% currently, as it seeks to leverage reindustry experts. Indian and Chinese mills will increase shipments to Europe to make up for supply shortages from Russia and Ukraine.
“We used to export around 25%, in 2-3 months we will export around 35-40% so that we can take a share of the higher prices,” JSPL managing director VR told Reuters. Sharma.
JSPL was India’s fifth largest crude steel producer in 2021 and competes with Tata Steel, JSW Steel (JSTL.NS), state-owned SAIL (SAIL.NS) and ArcelorMittal Nippon Steel India ( AMNS India).
“We are already booked until April 30 and will be booking orders for the next month until May 30,” Sharma said.
Industry experts expect Indian and Chinese mills to increase shipments to Europe to make up for supply shortages from Russia and Ukraine.
India exported 20.63 million tonnes in 2021, according to Indian research and analysis company Steelmint, mainly to Italy, Belgium, Nepal and Vietnam.
“The opportunity for Indian factories is that they can supply a large quantity and that will significantly increase their profit lines,” Sharma said in an interview.
However, AMNS India sales manager Alain Legrix de La Salle told an industry conference on Monday that he expects China to be “much more present in the ‘export due to weak domestic demand’.
La Salle said he expects AMNS’ domestic sales-to-exports ratio to remain stable as the company takes a long-term view, adding that he expects most exports of the company are destined for the Middle East.