World’s 3rd largest steel producer – India has observed reduction in its crude steel output on monthly premises. According to provisional data released by Indian govt., country’s crude steel output has fallen by 2.7% M-o-M from 8.27 MnT in Mar’17 to 8.11 MnT in Apr’17.
Also, India’s production for sale of total finished steel has reduced by 8.6% M-o-M to 8.43 MnT in Apr’17.
Major Indian steel biggies cut production in Apr’17 against Mar’17
India’s major steel makers have reduced crude steel output in Apr’17 compared to Mar’17. JSW Steel – India’s largest steel producer in terms of crude steel output has recently reported drop of 11% M-o-M in its Apr’17 crude steel output. Steel maker’s crude steel production fell to 1.288 MnT in Apr’17 compared to 1.45 MnT in Mar’17. Other major steel makers namely – SAIL, RINL and Tata Steel have also reported fall in their outputs in Apr’17.
Finished steel production of major Indian steel makers: Apr vs Mar’17
|
Steel Producers |
Apr’17 | Mar’17 |
M-o-M |
| SAIL | 1.01 | 1.12 | -9.80% |
| RINL | 0.28 | 0.32 | -12.50% |
| TSL | 0.91 | 1.08 | -15.70% |
| Essar+JSWL+JSPL | 2.54 | 2.85 | -10.80% |
| Others | 3.78 | 3.97 | -4.80% |
| Gross Production | 8.52 | 9.35 | -8.87% |
Production Fig in MnT of non alloy steel
Provisional data
Source: Joint Plant Committee
The steel makers have been seen increasing their output towards fiscal end (in Mar’17) to match up with the laid targets for the year. Also good realizations in exports over high prices in global market during Feb-Mar’17, attracted Indian steel makers. India’s finished steel exports jumped two fold from 0.68 MnT in Feb’17 to 1.52 MnT in Mar’17. To the contrary in Apr’17, export figure dropped to 0.65 MnT amid sharp decline in global prices and less demand from overseas buyers.
Apart from the above mentioned factors, another reason behind drop in country’s steel output could be attributed to fall in India’s finished steel consumption in Apr’17. India’s consumption of total finished steel declined by 22% M-o-M to 6.02 MnT in Apr’17. Hence weak demand continues to weigh on India’s steel production.
Indian Iron Ore & Steel Industry – A Snapshot
|
Particulars |
Apr’17 | Mar’17 | Apr’16 |
|
Stats |
|||
| Crude steel output | 8.11 | 8.27 | 7.69 |
| Iron ore Production | 17.80 (E) | 18.80 (E) | 16.99 |
| Finished Steel Export | 0.65 | 1.52 | 0.27 |
| Finished Steel Import | 0.37 | 0.85 | 0.50 |
|
Price Trend |
|||
| NMDC Baila Lump* | 2,425 | 2,425 | 2,100 |
| Premium HCC, FoB Australia (USD/MT) | 263.75 | 173 | 105 |
| Billet Ex-Mumbai, 100*100 mm (INR/MT) | 29,100 | 27,850 | 24,250 |
| HRC 2.5-8 mm Ex-Mumbai (INR/MT) | 41,000 | 41,000 | 34,750 |
| Rebar 12 mm Ex-Mumbai (INR/MT) | 32,800 | 31,800 | 27,600 |
Fig in MnT
*FoR prices in INR/MT, Royalty, DMF & other taxes extra
E: Estimated
Source: Joint Plant Committee, Indian Bureau of Mines, SteelMint Research
Leave a Reply