India’s crude steel production increased to approximately 8.15mn mt in June, up by 0.5pc from May and up by 19.9pc from the prior year. Production rose from a lower base as steelmaking in June last year was impacted by a strict COVID-19 lockdown.
According to official data, finished steel production rose to approximately 7.42mn mt in June, up by 25.8pc from the prior year but dipped marginally by 0.2pc from May. While consumption of finished steel increased by 28.4pc from the prior year to 6.5mn mt but fell by 0.8pc from May. Consumption was also lower than the 2019 and 2018 levels.
Consumption and net exports combined were higher than production in June, which led to the absorption of steel inventories. The closing stock of finished steel at June end was 8.07mn mt, which is 3.7pc lower than May and 39.3pc lower than June 2020.
Q1 steel production
Steel output in the first quarter of FY2022 improved significantly from the low base in the prior year. Crude steel and finished steel production increased by 60.6pc and 87.7pc, respectively, while consumption rose by 103.1pc. However, production and consumption in Q1 lagged compared to Q4, which can be attributed to the second wave of COVID-19.