India's steel production rose 0.8 per cent to 6.7 million tonne (MT) in June 2014 compared to a year ago, amid signs of a better economic outlook.
However, it lagged behind the 3.1 per cent global growth rate in steel during the month, as steel producers raised output to record levels responding to an improved economic scenario.
While domestic steel output growth in India was lower by almost half in June 2014, compared to the rate of 1.6 per cent clocked during May 2014, this can be largely attributed to seasonal factors like the monsoon which typically slows down construction and building activity .
However, a pick up in new and delayed industrial projects is largely expected to drive steel growth in the coming quarters.
Globally, crude steel production rose to 137 MT in June 2014, up from 132.9 MT in June 2013, close to a record level of production last seen in March powered by a 4.5 per cent growth in Chinese steel production to 69.3 MT.
In particular, the biggest growth in steel output came from European Union and North America, which showed an increase of 3.8 per cent and 1.7 per cent respectively over same period last year, the World Steel Association (WSA) said.
In the EU, Germany, France and Spain posted an increase in steel output in June 2014, while Italy showed a decline in steel output in June 2014 by 3.7 per cent over June 2013.
The US produced 7.2 MT of crude steel in June 2014, an increase of 1.9 per cent compared to June 2013, according to the WSA, which collates data from 65 countries representing 170 producers who contribute nearly 98 per cent of global steel production.
Asia posted a 2.9 per cent growth in steel production in June 2014 to 93.02 MT compared to June 2013.
In addition to China and India, South Korea posted a strong growth 10.8 per cent in June this year to 6 MT, compared to same month last year.
However, Japan's output data presented an exception with the country showing a 1.7 per cent decline in steel production to 9.1 MT of steel in June 2014 over June 2013.
In the first six months of 2014, world steel production went up to 821.3 MT, which was a 2.5 per cent increase compared to the same period of 2013.
A 1.8 per cent growth in steel output the Commonwealth of Independent States (CIS) -the fourth-largest producing region after Asia also contributed to the strong output growth. June steel output grew at 6.1 per cent in the construction-heavy Middle East, while South American output fell 6.5 per cent .
Source: ET
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