Iron, steel exports plunge 41% to $4.57 billion in September

New Delhi: India's iron and steel exports plummeted by 41 percent to USD 4.57 billion in September against USD 7.69 billion a year ago, hit by a subdued economic sentiment mainly in the commodities market.

"The year on year September fall in iron and steel is more than cumulative decline during April-September period against the comparable months of 2014," Engineering Export Promotion Council of India Chairman Anupam Shah said.

EEPC India is the apex organisation of the engineering sector in the country.

This is quite an alarming development. Global slowdown is really biting the sector, Shah said.

Over 40 percent drop in India's exports of primary iron and steel has come about on the back of a massive fall in shipments to the US, Italy, UAE, Bangladesh and Nepal among others in September this year, EEPC India said.

However, some consolation was provided by Belgium, China and Iran for the month even as the setback in these exports has dealt a severe blow to the country?s total engineering exports, it added.

Iron and steel along with non-ferrous metals form a major component of the total exports from the engineering sector.

"Essentially, the fall is seen more in value terms because of a steel drop in international prices while the volume is also under pressure due to subdued sentiment in the entire commodity space," Shah said.

Engineering exports which contribute maximum to the country's export basket and are dominated by the small and medium enterprises generating large employment are in deep crisis, he rued.

"The sector requires immediate help by way of interest sub-vention, increased refund of local duties and infrastructure support," Shah suggested.

The big fall came about as shipments to the US dropped by 77 percent to USD 19.81 million in September from USD 84.86 million in the same month last year.

Likewise, export of these basic material to Italy fell by 57.23 percent to USD 21.14 million from USD 49.42 million. To Nepal, the fall was even steeper by 85.58 percent to USD 7.27 million from USD 50.44 million.

The consignments to Thailand were down 85.43 percent to USD 4.74 million from USD 32.53 million, EEPC India said.

"Some solace was visible, though Belgium where exports of iron and steel increased to USD 36.22 million from USD 17.62 million rising by over 105 percent and China to USD 6.12 million from USD 5.71 million, increasing by 7 percent," it added.

To Iran, the shipments went up by 9 percent to USD 29.61 million from USD 27.08 million, it said.