A glaring mismatch between the steel demand and production continues in India. According to the data provided by the Joint Plant Committee, the government body that tracks steel metrics in India, steel production in the first six months of the year grew by 9.3 per cent whereas demand rose by a mere 1.8 per cent.
The period of April-September saw the country producing a total of 34.79 million tonne (mt) of steel as against 31.82 mt in the same period last year. The real consumption remained at 33.7 mt versus 33.1 mt last year, clocking a growth of a mere 1.8 per cent. However, when compared on a month-on-month basis, the steel production in the month of September was recorded at 5.73 mt as against 6.43 million tonne in August. The consumption, too, fell from 5.89 mt to 5.65 mt.
An analyst tracking the steel sector said, “The steel production is impacted because of the iron ore situation in Bellary [Karnataka] and that is now showing in the numbers.”
JSW Steel, which operates a10 million tonne steel plant in Bellary, cut down its production to 80 per cent capacity in September due to the shortage and later brought it further down to 30 per cent. Many other steel plants in the region have also resorted to production cuts or complete shutdowns.
SAIL, Tata Steel and RINL — the three major steel makers in India — together posted a production growth of 2.9 per cent with Tata Steel topping the chart with 11.1 per cent growth in the first six months. RINL’s production slipped by 5. 5 per cent whereas SAIL managed a dismal 1.1 per cent growth.
The period of April-September saw the country producing a total of 34.79 million tonne (mt) of steel as against 31.82 mt in the same period last year. The real consumption remained at 33.7 mt versus 33.1 mt last year, clocking a growth of a mere 1.8 per cent. However, when compared on a month-on-month basis, the steel production in the month of September was recorded at 5.73 mt as against 6.43 million tonne in August. The consumption, too, fell from 5.89 mt to 5.65 mt.
An analyst tracking the steel sector said, “The steel production is impacted because of the iron ore situation in Bellary [Karnataka] and that is now showing in the numbers.”
JSW Steel, which operates a10 million tonne steel plant in Bellary, cut down its production to 80 per cent capacity in September due to the shortage and later brought it further down to 30 per cent. Many other steel plants in the region have also resorted to production cuts or complete shutdowns.
SAIL, Tata Steel and RINL — the three major steel makers in India — together posted a production growth of 2.9 per cent with Tata Steel topping the chart with 11.1 per cent growth in the first six months. RINL’s production slipped by 5. 5 per cent whereas SAIL managed a dismal 1.1 per cent growth.
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