India's December steel output, consumption down on year

India's finished steel production and consumption dropped on the year in December, but rose on the month, pointing to an improving steel demand scenario in the country.

Finished steel production declined by 5.3pc on the year to 9.39mn t in December, while consumption dropped by 15pc from the previous year to 8.73mn t, provisional data from the steel ministry's Joint Plant Committee (JPC) showed. Finished steel comprises alloyed and non-alloyed steel.

Both production and consumption inched higher on the month by 1.9pc and 2.7pc, respectively. Consumption remained weaker in December as buyers postponed purchases in anticipation of lower prices, although the lifting of a construction ban in the northern states and subsiding rains in the south gave way to some demand.

The Argus hot-rolled coil index averaged 66,100 rupees/t ($889/t) in December 2021, 29pc higher than the December 2020 average, but lower by 5pc from the November average, when prices hit a new record.

Finished steel output in April-December rose by 22.1pc on the year to 82.21mn t, while consumption jumped by 16pc from the previous year to 75.85mn t, the JPC data showed.

Crude steel production in December fell by 3.9pc on the year, but inched up by 0.6pc on the month to 9.89mn t. Hot metal production dropped by 3.3pc on the year to 6.45mn t, but rose by 2.6pc on the month.

April-December production of crude steel climbed by 18.6pc to 87.07mn t, while hot metal production during the same period rose by 16.6pc to 57.65mn t and pig iron production gained by 24.9pc.

Public-sector crude steel and finished steel production rose faster than private-sector output in April-December, by 25.4pc and 37.9pc on the year, respectively.

Crude steel production by integrated steelmakers Sail, Tata Steel, JSW Steel, JSPL, RINL and AM/NS India accounted for 62pc of output, while their finished steel output accounted for 57pc of the total.

December finished steel exports rose by 29.3pc on the year and by 10.6pc on the month to 798,000t, while imports fell by 22.9pc from the previous year to 395,000t, but climbed by 26.6pc on the month.

Finished steel exports in April-December climbed by 24.2pc on the year to 10.3mn t, while imports rose by by 7.7pc to 3.5mn t.

By Sumita Layek

Finished steel	'000s
Dec-21	Dec-20	± %	Apr-Dec 2021	Apr-Dec 2020	± %
Production	9,390	9,912	-5.3	82,209	67,351	22.1
Consumption	8,728	10,263	-15.0	75,851	65,404	16.0
Exports	798	617	29.3	10,329	8,314	24.2
Imports	395	512	-22.9	3,458	3,209	7.7
- Source:JPC

Crude steel production	'000s
Producer	Dec-21	Dec-20	± %	Apr-Dec 2021	Apr-Dec 2020	± %
Sail	1,521	1,505	1.1	12,769	10,659	19.8
Tata Steel	1,519	1,575	-3.6	14,052	12,455	12.8
AM/NS + JSW + JSPL	2,613	2,707	-3.5	23,377	20,593	13.5
RINL	482	498	-3.3	4,011	2,727	47.1
Others	3,753	4,000	-6.2	32,860	26,983	21.8
Total	9,888	10,286	-3.9	87,069	73,417	18.6
- Source:JPC