India: Bar and Rod Production Slips by 10% in Jul’17

Amid seasonal low demand and falling prices, Indian bar and rod production also reported decline M-o-M in July 2017.

As per the recent data released by Joint Plant Comission, the overall bar and rod production by both large and medium/small scale producers in India stood at 2.596 MnT during Jul’17 against 2.898 MnT in Jun’17, fall nearly  by 10% on the basis on monthly analysis.

As per the yearly assessment, overall production registered marginal decline from 2.667 MnT in Jul’16.

On M-o-M In Jul’17, production of Bar & Rod by the large scale makers i.e. SAIL, RINL, JSW, Tata Steel and JSPL marked decline by approx 6.7% to 0.886 MnT.

The fall in production is owing to weaker demand in long steel with low margins comparatively strong demand in flat steel amid good margins. Though, the producers shifted their production for flat steel instead of long steel.

These large scale manufacturers are also mainly involved in billet/bloom exports which also resulted decline in the bar and rod productions following overwhelming response for semi finished steel from the Ocean buyers owing to supply crunch by major export countries in global market.

Production by the medium and small scale producers was also adversely affected due to seasonal slower trade activities. Production by the Medium and small scale producers reported fall of 13% to 1.718 MnT in Jul’17.

India: Bar and Rod Production Analysis

Quantity in MnT
Sources: JPC and SteelMint Research