As per recent data released by the Steel Ministry, Indian Bar and rod production decline by 7% in Jun’17 to 2.90 MnT against 3.11 MnT in May’17.
The decline in production was due to seasonal low demand and GST implementation affecting the demand from the stockiest end which them away from bulk buying influencing the manufacturers to reduce the production.
On the basis of quarterly analysis, the production increase marginally in Q1 FY18. Bar and Rod production during Apr-Jun’17 stood at 8.83 MnT as compared to same duration previous year which was at 8.77 MnT.
Rising production by large steel makers added to rise in overall bar and rod output Q1 FY18. On quarterly analysis as compared to Q1 FY17, the production by large steel makers rose by 3% to 2.92 MnT but M-o-M it marked a decline to 0.95 MnT in Jun’17 compared to 0.99 MnT in May’17.
Moving ahead to medium and small scale producers, the production on quarterly as well as monthly analysis registered a fall. The contribution by medium/small scale players stood at 1.98 MnT in Jun’17 down by 4%, M-o-M.
Company Wise Production Analysis
| Particulars | Jun’17 | May’17 | M-o-M |
| TSL | 0.273 | 0.274 | -0.40% |
| RINL | 0.267 | 0.279 | -4.30% |
| SAIL | 0.183 | 0.188 | -2.70% |
| JSW | 0.186 | 0.185 | 0.50% |
| JSPL | 0.042 | 0.062 | -32.30% |
| Medium/Small scale Producers | 1.982 | 2.095 | -5.40% |
| Overall Production | 2.898 | 3.103 | -6.60% |
*Qty in MnT
Large scale producers in India contribute about 33% of the total bar and rod production and rest 67% by the medium and small scale producers.
Source: SteelMint Research and Customs
Imports & Exports:
Imports of Finished Steel stood at 1.71 MnT during Apr-Jun’17, a decline of 6.8 % compared to Apr-Jun’16 which was 1.83 MnT
Finished Steel Exports marked a significant growth by 66% in Q1 FY18 to 2.04 MnT against 1.23 MnT in Q1 FY17.
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