Finish Long Steel Production in India Surge by 6%

As per the recent data released by Joint Plant Committee, Finish long (Bar & rods and Structures) steel production in India by both large and medium/small scale producers stood at 4.09 MnT in March 2018.

The production has been stretched up by around 6.23% M-o-M as well as Y-o-Y basis in Mar’18 against 3.85 MnT in Feb’18 and the same was registered in Mar’17.

On monthly analysis in Mar’18, Finish long production by the large scale makers i:e; SAIL registered around 0.42 MnT (+ 10.53%) followed by RINL 0.41 MnT (+ 32.26%), JSW 0.24 MnT (+14.29%), Tata Steel 0.27 MnT (+3.85%) and JSPL 0.11 MnT (-8.33%), Further the production by Medium & small scale producers increased by around 2.33%  and the changes in production are compared with Feb’18 figures.

Driving Factors

— The rise in production can be considered due to better marginal value in domestic market as the prices have been stretching up from last 3-4 months and proportionately it rose by around 22-23% since Dec’17 and the current Rebar prices are higher since April 2013.

— Also, as per mill owners, with the price rise demand also sky high as the government’s project works is on fastest pace. As per Industry participants, most of mills are running out of stock for which the producers gaining output with increase operations.

— The Indian large producers have raised domestic rebar prices by around INR 1,000/MT in Mar’18 & around INR 500/MT in Apr’18. The latest price range of Rebar for 12-25 mm assessed at INR 44,500-45,000/MT ex-works, Mumbai and INR 45,500-45,750/MT in North Region. As per participants, the large producers may further hike prices for May’18 deliveries due to supportive demand amid limited stock.

Company wise Production

Quantity in MnT
Source-SteelMint Research