Bucking the global trend of a consistent decline in steel production, India has maintained its position as the only country among the top-four producing nations to report a positive rate of growth in the first five months of the current year with a total output of 37.65 MT.
India’s alloy steel output grew 6.1% during the January-May period even as all other leading producers, such as China, Japan and the US, reported a decline. Production in China fell 1.6%, Japan 4.4% and US 8.6% to 340.16 MT, 44 MT and 33.12 MT, respectively, during the same period.
According to the World Steel Association (WSA), a leading global industry body, world-wide steel output fell 1.9% during January-May. Barring Russia and Brazil, steel production also dipped in Germany, Turkey and Italy.
India’s production has been consistent so far during the year with output of 7.65 MT in January, 7.17 MT in February, 7.7 MT in March, 7.43 MT in April and 7.68 MT in May.
The rise in output in each month of the current year compared to the respective months of the previous year helped India regain its earlier third position in the world, displacing the US. China and Japan are ahead of India.
Though it might take some years for India to overtake Japan, the local industry is gearing up to make the most of the projected higher demand as the economy improves.
Almost all leading producers of steel are raising their capacities expecting future demand to be robust. India has around 100-MT steel-making capacity now and the government hopes to treble it by 2025-26.