The steel production by steelmakers in India rebounded in the month of July this year, as demand started returning to near-normal levels, following easing of lockdown restrictions in many parts of the country.
The output by integrated steelmaker Jindal Steel & Power Limited (JSPL) surged higher by nearly 13% from the prior year to 603,000 tonnes during the month. The steel sales by the company rose by 29% to 637,000 tonnes. The company expects its steel sales to further surge higher by 10% in August over the prior month and by additional 5% in September. According to VR Sharma, MD, JSPL, the easing of lockdown restrictions has led to resumption of movement of goods and stalled construction activities in the county.
Another leading steelmaker, JSW Steel, posted 9% month-on-month surge in crude steel production during July. The average capacity utilization rate too increased to touch 83% during the month. The elevated levels of net exports of steel led to reduced inventory levels, which in turn resulted in significant boost in production.
Meantime, the state-owned Steel Authority of India Limited (SAIL) reported its best ever July performance in the company’s history. Year-on-year, the company’s overall steel sales have increased by almost 50% to 1.58 million tonnes. The domestic sales and exports surged higher by 29% and 349% respectively.
