Domestic production of finished steel fell by 10.3 per cent on a year-on-year basis to 85.6 million tonnes during the first 11 months of the just-concluded financial year, according to data provided by the Ministry of Steel’s Joint Plant Committee.
Consumption during the same period too fell by 9.9 per cent to 84.7 million tonnes.
Steel producers have made rapid gains after producing half their usual volume during the initial months of the pandemic. Production during February rose 7.4 per cent on a year-on-year basis to 9.2 million tonnes. The scale-up comes amid a sharp rise in domestic and global steel prices.
Domestic prices expected to rise further on the back of higher international prices. “Domestic steel prices remained firm in March, trades at an ₹6,000 discount to prices from Korea, indicative of a further upside in prices,” Motilal Oswal Financial Services said in a note on Monday. “Spreads on steel prices remain firm despite a rise in iron ore prices.”
Exports for the 11-month period have also risen 22 per cent on a year-on-year basis to 9.5 million tonnes. On the other hand, imports are down 9 per cent to 4.3 million tonnes.