The Indian mission to Tanzania has asked Indian steel mills to explore the possibility of increasing exports to the African country.
The Tanzanian market is currently dominated by China, South Africa and Japan; and the Union Steel Department may consider promoting Indian services, some of which are already in high demand there.
The High Commissioner of India to Tanzania, Binaya Srikanta Pradhan, has proposed sending a business delegation there by the end of the year to facilitate the meeting between buyers and sellers.
business reviewed a copy of the letter.
In 2022, Tanzania – one of the largest countries in the African continent – bought iron and steel items worth $1250.27 million. India’s exports were $105.52 million.
India’s market share in Africa
India is currently the fourth largest supplier of iron and steel to this African country with a market share of 8.44% in 2022. Market share decreased from 8.75% in 2021, but improved in 2020 while still remaining. 6.15%.
Other countries like China improved their share to 41.47% (compared to 38% in 2021 & 36.6% in 2020). South Africa’s market share is 12.58% (an improvement of more than 9.84% in 2021 and 8.45% in 2020), while Japan’s is 11.43% (down from 15.82% in 2021). and 8.31% in 2020).
“….while India is leading in some segments such as bridges, locked gate towers, doors and windows, columns and columns and corners, it lags in other segments such as iron or non-ferrous alloy steel… A visit by India’s steel business stakeholders would be a good idea to boost our steel sector exports,” Pradhan’s letter states. .
According to the letter, the Ministry of Steel may consider sending business delegations between September and December.
“We have discussed this with major importers and local steel producers who produce basic items using scrap as raw material. It is felt that with some effort, India can increase its exports in the segments where it is currently lagging,” the letter read.
export india
In the iron and steel export category, Indian enterprises have a stable market share of 6% (compared to 2020) equivalent to USD 49.25 million in 2022; while in the category-specific segment (classified as iron and steel items), its market share doubled to 14% (in 2020) to $56.27 million.
According to documents available to the Ministry, in flat-rolled, hot-rolled, plated and coated iron or non-alloy steel products, India is among the top six suppliers with an export value of 0.91 million. USD.
In fact, exports in this category fell from $2.59 million in 2020 to $1.17 million in 2021. In contrast, China’s exports in these categories increased from 68, $32 million in 2020 to $182.21 million in 2022.
In the flat-rolled product category, the country has lost market share, falling to 10th place from 8th place in 2020. In terms of value, exports will reach $0.10 million in 2022 compared to zero. $32 million by 2020.
Indian exporters lead in the demand segment and the demand share will reach $23.05 million in 2022, tripling from $7.28 million in 2020.
Railway exports and construction materials is a category in which India has made some gains, but in terms of value it remains at $0.14 million in 2020.
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Also read: India’s steel exports up 13% in April
