ArcelorMittal Nippon Steel India (AM/NS India) crude steel production increased by 5pc to 7.23mn mt in FY2020 and pellet production rose by 9.4pc to 11.63mn mt from a year ago.
AM/NS achieved record production FY2020 despite facing challenging economic conditions including the impact of COVID-19 in the fourth quarter, according to a company release.
India’s has imposed a 40 day nation-wide lockdown to control the spread of Covid-19 pandemic from March 25. Although steel production is designated as an essential service, restriction on the movement of people, goods and closure of downstream industries have forced Indian steelmakers to scale down the production in order to prevent surplus inventory amid weak demand environment. AM/NS along with other steel producers has been impacted by the reduction of demand from large steel-consuming sectors like automotive and construction.
Despite price and demand volatility, AM/NS India’s operational performance has improved, said Dilip Oommen, CEO of AM/NS India and added that the company’s performance would have been much better if the pandemic had not impacted domestic and global steel demand towards the end of March.