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India’s June steel output lags global growth average

23 Jul 2013 Evaluate

India’s steel output though improved marginally by 0.9% to 6.450 million tonne (mt) in June 2013, compared to 6.392mt in June 2012, but the country lagged much behind the world average production growth of 1.9% for the month. India, which ranks fourth in the world order of steel production, had logged the highest growth of 4.2% among major producing nations in 2012.Though, there have been slowing global growth that impacted the steel production but in case of India, legal issues coupled with delay in lot of proposed infrastructure projects, including highways, power plants, railway projects and construction activity resulted in low offtake.

As per the latest figures from World Steel Association (WSA) which represents approximately 170 steel producers, global steel output touched 132 million tonne in June 2013, compared to 129.229 MT in June last year, led largely by a 4.6% growth in Chinese production. Indian production growth rate in first six months of the year, however is a little higher when compared to the world’s average growth during the period. The country posted a 2.5% growth in steel production to 39.63 mt in the six month period January-June 2013 against 38.68 mt in the same period in 2012. While, during the same period, world crude steel production was 789.8 mt, an increase of 2% compared to the same period of 2012.

Among the other major producers, Chinese production once again stood maximum in June at 64.66 MT. Japan produced 9.3 MT, the US produced 7.2 MT, Russia produced 5.7 MT and South Korea 5.5 MT. While, from European nations, Germany produced 3.7 MT, Italy produced 2.2 MT, France produced 1.4 MT and Turkey produced 3 MT of crude steel in June 2013.

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