Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian steel maker, JSW Steel’s crude steel production in the country dropped by 7pc in November to 1.29mn mt, from a year ago. Output was impacted by a 14pc decline in long steel production.


Long steel output in November fell to 299,000mn mt from 34.4mn mt a year earlier, while flat rolled products output slipped by 1pc to 900mn mt.


Still, JSW’s steel output rose by 3pc from October after blast furnaces that were hot idled recommenced melting on the return of auto sector demand. 


India’s largest car maker, Maruti Suzuki, ended a nine-month decline in auto production in November, when production rose by 4.33pc from the prior year period. A large increase in its compact car segment lifted overall volumes and negated a drop in mini car production.


The trend reversal confirms previous Davis Index reporting on an increase in steel orders from automotive makers in November. Steel producers said that order books from India’s automotive sector picked up towards the end of October and stayed strong through November; with some suggesting car makers have their production lines committed to increased activity for the next three months.


A drying up of dealer inventory and pipelines after two months of heavy discounting before and through India’s festive season in October sparked the inventory wipe out and a reversal in supply-demand. Several car makers now have pending order books that run through to February. 


In November, Maruti Suzuki produced a total of 141,834 vehicles across all it vehicle segments, up from 135,946 vehicles a year ago. 




Leave a Reply

Your email address will not be published.