Imposition of tariff by US will not dent steel exports from India: Care

Aluminum and steel together accounts for around 3% of India's exports to the US

US President Donald Trump signing an executive order to impose tariffs on foreign made steel and aluminium is not likely to dent steel exports from India, Care Ratings said in its report on Friday.

Aluminum and steel together accounts for around 3 per cent of India's exports to the US.

In FY17, finished steel exports to the US by India stood at 235,000 tonne and accounted for 2.1 per cent of the 11.3 million tonne of finished steel exported by India. The share of steel exports to the US has declined over the years in quantity as well as value terms.

During April-October 2017, finished steel exports to the US grew by 3.4 per cent to nearly 129,000 tonne, while its value increased by 23.5 percent to $180.3 million on a y-o-y basis. 

Considering the quantity of steel exports by India to the US, the tariff hike is not likely to hit steel exports from India, said Care Ratings.

With regard to India’s aluminium exports to the US, in FY17, primary aluminium exports to the US by India stood at 49,000 tonne and accounted for 2.1 per cent of the 2.342 million tonne of primary aluminium exported by India.

Both in quantity and value terms, the aluminium exports from India to the US has accounted for 1-3 per cent of its total exports. During April-October 2017, primary aluminium exports to the US grew by 352 per cent to 51,000 tonne, while its value increased by 445 per cent to $180.3 million on a y-o-y basis. This increase can in part be attributed to the increase in domestic production of primary aluminium by 38 percent (y-o-y) with improvement in the operational efficiencies. Exports from India have grown by 27 per cent (785,000 tonne) in the current fiscal while domestic consumption (480,000 tonne) has contracted by 25 per cent, said the report.