Indian crude steel output lags Asian average in June

World crude steel production for the 66 countries reporting to the International Iron and Steel Institute (IISI) was 696 million tonnes in the first half of 2008, an increase of 5.7 per cent over the corresponding period last year.

The Indian production stood at 27 million tonnes, up 4.2 per cent, while China produced 263.2 million tonnes, an increase of 9.6 per cent, compared with the corresponding period in 2007.

India’s production growth was below the Asian average in June. The country produced 4.3 million tonnes of crude steel in the month, up 5.2 per cent. The overall Asian production was of 68.3 million tonnes compared with 62.8 million tonnes in June 2007, up 8.7 per cent.

The domestic producers pointed out that some of the projects would go onstream in the second half of the year and growth could pick up in the latter half of the year. Last year, production grew by around six per cent.

However, due to a huge gap in prices, imports this year were negligible.

Last year, India imported around six million tonnes. Currently, the gap in prices is more than $200 per tonne as the domestic producers have committed to cap prices till July to help fight inflation.

vvgggThe China story appeared to be showing some signs of a fatigue setting in. In June 2008, China’s moving annual total (MAT) growth rate slowed further to 10.2 per cent compared with its peak of 26.3 per cent in January 2006. China’s crude steel production in June 2008 was 46.9 million tonnes, an increase of 10.2 per cent.

The EU production was 18.1 million tonnes, 1.8 per cent higher than June 2007. Germany, the largest producer in the EU, produced 4.1 million tonnes of crude steel, up 2.1 per cent compared with the previous corresponding period.

The “Other Europe” region of seven countries outside the EU produced 2.9 million tonnes in June 2008, up 15.5 per cent from June 2007. Turkey’s production was 2.5 million tonnes, which was 17.5 per cent higher compared with the previous corresponding period. Turkey produced 10.6 per cent more crude steel in the first six months of 2008 than over the same period last year.

IISI represents approximately 180 steel producers and 75 per cent of world’s steel (excluding China) and the membership in China now accounts for over 20 per cent production.