India’s steel production in January rose by 7.2pc to approximately 10.77mn mt from a year ago, while finished steel production increased to 11.59mn mt, up by 4.1pc, according to official data. Consumption rose by 8.7pc to 11.12mn mt approximately amid robust domestic steel demand.
| India’s steel production in January | |||||
|---|---|---|---|---|---|
| Unit: mt | Jan ’21 | Change MoM | Change YoY | Apr-Jan | Change YoY |
| Crude | 10.77 | 1.9% | 7.2% | 82.71 | -9.7% |
| Finished steel | 11.59 | 1.8% | 4.1% | 76.04 | -12.4% |
| Consumption | |||||
| Finished steel | 11.12 | 3% | 8.70% | 74.58% | -12.7% |
In the April-January period, cumulative crude steel production decreased to 82.71mn mt, down by 9.7pc from the prior period, while MT finished steel production was at 76.04mn mt, down by 12.4pc. Consumption decreased by 12.7pc to 74.58mn mt.
A steady increase in consumption led to a drawdown of inventories with the closing stock of finished steel at mills dropping to 10.11mn mt at the end of January, which is 22.5pc below the prior-year level and down by 4pc from December.
In January, state-owned steelmaker Sail reported the highest ever monthly production of hot metal at 1.69mn mt, up by 8pc from the prior year and crude steel production of 1.54mn mt up 5pc. Saleable steel production rose by 7pc to 1.49mn mt from the prior year.
Exports and imports
India was a net exporter of finished steel in the April-January period with a net trade surplus of 5.0mn mt. However, improving domestic demand reduced exports and increased imports in recent months. In the April-January period, exports of finished steel rose by 22.5pc from the prior period to 8.84mn mt, while import fell by 36.7pc to 3.79mn mt.
Imports exceeded exports for the first time in the FY2020-21 in January and India became a net importer with a trade deficit of 0.06mn mt. In January, exports fell by 24.6pc while imports rose by 22.0pc from the prior year.
In January, the share of India’s steel imports from China declined to 17pc from 20pc in January 2020, while imports from South Korea fell to 35pc from 47pc and imports from Japan decreased to 8pc from 9pc. On the other hand, imports from Germany, Austria, France and Taiwan increased in January.
Share of exports to Italy rose to 22pc in January from 17pc in the prior year, exports to Nepal rose to 18pc from 13pc. Exports to Spain, Belgium and Portugal also increased in January, while the share of exports to Vietnam and UAE declined.