Indian Steel Output Recuperated, Driven by Robust Demand

SEATTLE (Scrap Monster): The steel production by steelmakers in India rebounded in the month of July this year, as demand started returning to near-normal levels, following easing of lockdown restrictions in many parts of the country.

The output by integrated steelmaker Jindal Steel & Power Limited (JSPL) surged higher by nearly 13% from the prior year to 603,000 tonnes during the month. The steel sales by the company rose by 29% to 637,000 tonnes. The company expects its steel sales to further surge higher by 10% in August over the prior month and by additional 5% in September. According to VR Sharma, MD, JSPL, the easing of lockdown restrictions has led to resumption of movement of goods and stalled construction activities in the county.

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Another leading steelmaker, JSW Steel, posted 9% month-on-month surge in crude steel production during July. The average capacity utilization rate too increased to touch 83% during the month. The elevated levels of net exports of steel led to reduced inventory levels, which in turn resulted in significant boost in production.

Meantime, the state-owned Steel Authority of India Limited (SAIL) reported its best ever July performance in the company’s history. Year-on-year, the company’s overall steel sales have increased by almost 50% to 1.58 million tonnes. The domestic sales and exports surged higher by 29% and 349% respectively.

The country’s total domestic steel demand rose by 11% over the prior month in July this year.