August turned out to be a bright month for the over USD 100 billion Indian
steel industry, with imports of the metal declining, while exports and consumption registering
an upward trend.
After declining for 2 consecutive months, country's steel consumption rose, though marginally, to 6.97 million tonnes (MT) last month
compared to July 2016.
Consumption in the world's third largest steel producer rose 2.7 per cent in August this year, against July, while on yearonyear basis the
growth was one per cent, latest data by Steel Ministry's Joint Plant Committee (JPC) showed.
India's consumption of total finished steel saw a growth of 1.3 per cent in AprilAugust this fiscal to 33.74 MT over the same period of last
year, it added.
The demand had declined for the secondstraight month in July 2016, falling over 7 per cent to 6.3 MT compared to June, whereas in June
2016, it fell 8 per cent to 6.8 MT over May.
However, on the brighter side, steel imports fell 34.5 per cent to 3.012 MT in AprilAugust 201617 compared to the yearago period, JPC
data showed.
"Imports in August 2016 (0.619 MT) was down 36 per cent over August 2015 and by 2.2 per cent over July 2016. India remained a net
importer of total finished steel during this period," it said.
Another silver lining for the sector was an increase in exports of the metal.
Exports of total finished steel was up 23.6 per cent in the first five months of this fiscal to 2.38 MT against the AprilAugust period in 2015
16.
Outbound shipments in August 2016 stood at 0.68 MT, a healthy growth of 87 per cent over August 2015 and 26 per cent over July 2016.
During AprilAugust 201617, crude steel production grew 7 per cent to 39.98 MT over same period of 201516.
Steel output in August 2016 stood at 8.18 MT, up 9.8 per cent over August 2015 and by 1.2 per cent over July 2016.
SOurce:ET