Posted on 10 Dec 2021
India's finished steel consumption declined in November as demand remained sluggish owing to higher prices.
Finished steel consumption dropped by 8pc on the year and by 3.2pc on the month to 8.47mn t in November, provisional data from the steel ministry's Joint Plant Committee (JPC) showed. Finished steel production of 9.19mn t rose by 1.7pc on the year but fell by 3.3pc on the month.
Higher steel prices in November on the back of increased coking coal and thermal coal costs, coupled with a construction ban in India's northern states and heavy rainfall in the southern states, weighed on demand.
The latest weakness follows a relatively strong year. Finished steel output over April-November rose by 26pc on the year to 72.06mn t and consumption rose by 20.4pc to 66.37mn t, the JPC data showed.
The Argus hot-rolled coil index averaged 69,750 rupees/t ($920/t) in November, the highest since at least 2015, according to Argus records. Prices were up by 55pc compared with the November 2020 average and 106pc higher than the November 2019 average.
November crude steel production of 9.64mn t rose by 0.3pc on the year but fell by 1.6pc on the month.
Hot metal production rose by 1.2pc on the year, while pig iron production dropped 5pc on the year.
Crude steel output during April-November rose by 21.1pc on the year to 76.4mn t, while hot metal production increased by 19.6pc and pig iron output climbed by 28.3pc.
Private-sector crude steel production rose slower than public sector output in April-November (see table) and accounted for 81pc of total output. By contrast, public-sector finished steel output rose the fastest, up by 45pc in April-November and more than double the 22pc growth for the private sector.
Crude steel production by integrated steelmakers Sail, Tata Steel, JSW Steel, JSPL and AM/NS India accounted for 63pc of output, while their finished steel output accounted for a 58pc share of the total.
November finished steel exports of 722,000t rose by 20.7pc on the year but slowed by 31.6pc on the month as softer Chinese prices made Indian offers uncompetitive, the JPC data showed. November finished steel imports fell 11.1pc on the year to 312,000t.
Finished steel exports over April-November climbed by 23.8pc on the year to 9.53mn t, while finished steel imports gained by 13.5pc to 3.06mn t over the same period.
Source:Argus
