Large Private Steelmakers Boost Output on Revived Demand

SEATTLE (Scrap Monster): Large Indian steel producers have reported increased production, mainly driven by recent surge in demand. However, small-scale producers reported notable decline in output, primarily on account of raw materials shortage and higher input costs.

Tata Steel- the country’s largest steel producer returned to 100% operating capacity in August, for the first time since the nationwide lockdown, said T.V. Narendran, Chief Executive Officer. Another private player JSW Steel reported 6% sequential jump in crude steel production during the month to total 1.31 million tonnes. The flat steel products reported 15% growth, at 980,000 tonnes in August. Also, Jindal Steel and Power Limited (JSPL) reported total steel sales of 625,000 tonnes, significantly higher by 37% from the same month a year before.

ALSO READ:

Indian Steel Mills Recorded Boosted Sales in August

Fitch Ratings Foresees Contraction in Indian Steel Demand in FY21

The boosted output by large steelmakers is likely to squeeze the operations of medium and small scale producers, especially at a time when overall steel demand in the country is predicted to witness decline. As per estimates provided by Indian Steel Association (ISA), the calendar year 2020 steel demand is expected to record 20-21% decline over the previous year.