PRODUCTION OF STEEL FALLS 1.9% IN INDIA DESPITE OF THE GROWTH IN CONSUMPTION

Even as domestic steel consumption grew by 4.3% in India during the April-February period of the current financial year, production of domestic industry fell by 1.9% making it clear that imports, mostly at predatory prices, are eating into the shares of SAIL, Tata Steel and others in the domestic market.

Finished steel production fell during the 11-month period of the current financial year to 82.88 MT from 84.45 MT in the corresponding period of the previous financial year.

Fall in production has been reported by both integrated steel producers such as SAIL and Tata Steel by 0.8% and “other” producers such as JSW Steel, Essar Steel and JSPL by 3.3% at 42.35 MT and 47.73 MT, respectively.

“Compared to January 2016, overall production for sale in February 2016 (7.31 MT) decreased by 6.9% led by a decline in case of both the ISP producers (by 9.1%) and the other producers (by 7.4%),” Joint Plant Committee , a unit under the steel ministry said in its latest report.