INDIA DATA: Crude steel output scales record high of 120 million mt in FY 2021-22

India's crude steel production for the 2021-22 fiscal year (April-March) rose 16% to set an all-time high of 120 million mt, provisional data from the Joint Plant Committee showed April 4, exceeding a previous high of 111 million mt set in 2018-19.

The annual increase was likely due to JSW Steel firing up a second blast furnace at Dolvi, Maharashtra on Oct. 3, 2021, doubling the Dolvi Steel Work's production capacity to 10 million mt/year.

Previously, JSW Steel had 18 million mt/year of capacity, which rose to 21.5 million mt/year after the steelmaker completed its takeover of debt-ridden Bhushan Power and Steel Ltd., or BPSL, in March 2021. Currently, JSW Steel has 26.0 million mt/year of crude steel production capacity.

The final annual tally came after crude steel production rounded off the financial year with a 5.4% year-on-year increase in March, which also rose 9.9% against February 2022.

Likewise, finished steel production rose 17.7% for the reported year, as March output rose 6.3% annually and spiked 18.2% month on month on strong demand.

The demand was helped by a 25.1% annual hike in finished steel exports, even though the March exports posted a 7.5% fall from March 2021 but rose 3.3% from February 2022.

India's steel exports are likely to remain strong in the first month of the new financial year, as the European Commission adjusted its European Union steel imports quota system, effective April 1, to avoid regional market shortages following its ban on steel from Russia and Belarus due to their actions in Ukraine.

The Russian Federation's tariff quota to send nonalloy and other alloy hot rolled sheets and strips to the EU was 407,786 mt for Jan. 1 to March 31. Its quota has been shared out among Turkey, India, Republic of Korea, UK, Serbia and other countries.

Likewise, for nonalloy and other alloy quarto plates category, the Russian Federation's quota of 74,752 mt was shared among Ukraine, Republic of Korea, India, the UK and others.

Indian Steel Data (million mt)

Source: Joint Plant Committee