India produced 8.08 million mt of crude steel in July, down 15% year on year but up 7.5% from June, provisional data from the Joint Plant Committee showed Aug. 21.
The monthly increase was due to higher domestic steel demand of 6.96 million mt in July, up 13% from June 2020, the data showed.
One factor behind the higher demand was the Indian car industry, which produced 1.72 million units in July, down 29% year on year, but up 58% from June, as local automakers resumed production after a nationwide lockdown to fight the coronavirus was lifted.
Also, as a result of the firmer demand, India's monthly finished steel exports dipped to 1.38 million mt of finished steel in July 2020 from 1.55 million mt in June. Year on year, July exports of the same products more than double from the 0.60 million mt sent in July 2019.
"Significant increase in exports to China, Spain and Italy was recorded in July 2020 as compared to July 2019. However it declined for Vietnam and Nepal during the same period," the Ministry of Steel said Aug. 17.
India's crude steel production for the first four months of its financial year (April-July 2020) totaled 25.06 million mt, down 32.9% against the corresponding period of 2019.
As for exports during April-July, the amounted to 4.64 million mt, nearly 2.5 times the 1.93 million mt delivered the year before.
As a result, India was a net steel exporter as imports for the four-month period stood at 1.51 million mt, down 42% year on year.
-- Clement Choo
Source : Steel Business Briefing
