INDIA DATA: April crude steel output up 3% amid new blast furnace

India's crude steel production reached 9.85 million mt in April, up 3.1% year on year, data from the Joint Plant Committee showed May 4, amid an increase in production capacity.

The annual output rise is a result of JSW Steel firing up a second blast furnace at Dolvi, Maharashtra on Oct. 3, 2021, which doubled the Dolvi Steel Works' production capacity to 10 million mt/year.

Likewise, production of finished steel hovered at 9.35 million mt in April, 0.9% higher from the previous year while hot metal production grew by a similar 1% from a year ago.

Nevertheless, steel demand from domestic vehicle makers is under downward pressure as a global semiconductor shortage has prevented the makers from meeting demand.

There was strong demand for passenger vehicles but waiting periods were long due the shortage of automotive parts, which has hindered vehicle production, according to Federation of Automobile Dealers Association, or FADA.

India's biggest carmaker Maruti Suzuki manufactured 157,392 vehicles in April, down 1.6% from 159,955 vehicles a year ago.

"The shortage of electronic components had a minor impact on the production of vehicles during the month," Maruti said May 1.

FADA cautioned in April that the Russia-Ukraine war and COVID-19 lockdowns in China will further dent supply chains, thus hampering production further. FADA expects the Indian automotive industry to return to pre-pandemic highs in the fiscal year 2023-24 (April-March).

As for finished steel trades, both imports and exports fell in April against the year before due to lower international demand.

In Europe, buyers refrained from making new deals with overseas suppliers due to long lead times, while they expected import prices to move down further. Buyers also avoided bookings with European steelmakers as they anticipated domestic prices will drop due to competitive import offers.

Indian Steel Data (million mt)

Source: Joint Plant Committee