Posted on 06 Mar 2023
India's finished steel production and consumption in February fell from January, while the country remained a net importer for steel for the fifth consecutive month.
Production of finished steel fell by 7.9pc on the month to 9.87mn t in February, but was 2.9pc higher on the year, provisional data from the steel ministry's joint plant committee (JPC) show. Finished steel comprises alloyed and non-alloyed steel.
Consumption dropped by 5.4pc against the previous month but was higher by 11pc from January 2022 at 10.1mn t.
Steep increases in domestic steel prices last month weighed on consumption, as buyers postponed purchases. The Argus Indian domestic hot-rolled coil (HRC) price rose to a seven-month high of 61,000 rupees/t in early February after mills increased prices, but eased thereafter on subdued demand.
Finished steel production during April-February was up by 6.2pc on the year to 109.4mn t, while consumption rose by 12pc to 107.2mnt during the same period.
Crude steel production fell by 2.5pc on the year and was lower by 9.4pc on the month at 9.89mn t in February. India's crude steel output was up by 3.9pc on the year at 112.4mn t during April-February.
Imports of finished steel climbed by 44pc on the year to 593,000t in February, while exports decreased by 50pc against the previous year to 575,000t, JPC data show.
Steel imports have exceeded exports six times in the last eight months, as lower international prices have made imports attractive in the domestic market. But increasing global prices are likely to deter the inflow of steel in the coming months.
Imports rose by 30pc on the year to 5.59mn t during April-February, while exports were down by 52pc to 5.9mn t during the period.
Exports were mainly hit by a 15pc tax that the government imposed between May and November last year. Shipments have improved since the removal of the duties, although weaker international demand, especially from Europe, has kept exports in check.
| India steel data | 000t | |||||
| Feb-23 | Feb-22 | ± % | Apr-Feb 2023 | Apr-Feb 2022 | ± % | |
| Finished Steel | ||||||
| Production | 9,873 | 9,590 | 2.9 | 109,352 | 102,999 | 6.2 |
| Consumption | 10,095 | 9,085 | 11.1 | 107,195 | 96,052 | 11.6 |
| Exports | 575 | 1,157 | -50.3 | 5,904 | 12,299 | -52 |
| Imports | 593 | 411 | 44.2 | 5,592 | 4,318 | 29.5 |
| Crude Steel production | ||||||
| SAIL | 1,477 | 1,408 | 4.9 | 16,539 | 15,712 | 5.3 |
| TATA Steel | 1,550 | 1,602 | -3.3 | 18,055 | 17,547 | 2.9 |
| AM/NS + JSW + JSPL | 2,815 | 2,958 | -4.9 | 31,185 | 29,558 | 5.5 |
| RINL | 398 | 387 | 2.8 | 3,739 | 4,880 | -23.4 |
| Others | 3,659 | 3,793 | -3.5 | 43,925 | 41,481 | 5.9 |
| Total | 9,898 | 10,149 | -2.5 | 113,443 | 109,177 | 3.9 |
| Source: JPC | ||||||
Source:Argus Media
