India’s crude steel production in June this year totaled 6.8 million mt, according to a statement from the ministry of steel. The June steel production showed a turnaround in the performance of the domestic steel industry as it was up 17.7 percent from May.
However, the impact of the pandemic and national lockdown are evident from the fact that June production was down 27.2 percent compared to production during the corresponding month of the previous year, the statement said.
The improvement in economic activities hit by the pandemic and the lockdown was evident from the fact that the performance of eight core sector industries with weightage of 40.27 percent in the Index of Industrial Production (IIP), after declining by 37 percent in April this year, registered a fall at a slower rate of 23.4 per cent in May.
Similarly, the Index of Steel Production, which fell sharply by 83.9 percent in April, registered a fall of 48.4 percent in May, the ministry statement said.
India’s production of finished steel in June is estimated at 5.9 million mt, up 15.6 percent from May, but down 33.3 percent from the corresponding month of the previous year.
Most large steel producers in India expect a visible recovery of domestic steel consumption from the third quarter (October-December 2020). According to CARE Ratings, compared to year-ago levels, consumption was still down sharply by 40.8 percent in June this year and large-scale steel producers resorted to higher exports to tackle tepid demand in the domestic market.