Indian steelmaker ArcelorMittal Nippon Steel India (AMNS India) recorded crude steel production of 7.23 million mt in the fiscal year 2019-20 ended March 31, up five percent year on year, a company statement said on Thursday, April 24. The result was achieved even despite the sharp demand fall in March due to the spread of the Covid-19 virus.
“Despite price and demand volatility, AM/NS India made great strides to improve its overall performance and operational efficiency. Our record performance would have been even stronger but for the impact of Covid-19 on domestic and global steel demand towards the end of March,” Dilip Oommen, CEO of AM/NS India, said.
The iron ore pellet production of the producer was recorded at 11.63 million mt in FY 2019-20, up 9.4 percent year on year, the company said.
“Like many other countries, India’s efforts to contain the spread of Covid-19 led to a nationwide lockdown from March 25. Though the central and state governments designated steel production as an essential service, constraints on the movement of people, logistics and downstream industries forced a significant production cut to prevent buildup of surplus inventories,” the company statement said.
It is expected that the operational results of AMNS India in the first quarter of the fiscal year 2019-20 will be much lower than usual as the national lockdown was extended until May 3 and it will take from one to six months for domestic steel demand to normalize, according to different experts. Sources said that during the lockdown most private sector steel mills decided to cut production by 30-50 percent or even more.