Steel output slumps 13% in March due to Covid-19, steepest fall in 8 years

The lockdown also had a profound impact on coal production, which contracted for the first time since 2012

The country’s steel output tumbled 13 per cent in March, its steepest fall during the past eight years. In the same month of last year, steel production had grown by 6.3 per cent.

A study by CARE Ratings attributed the fall in steel production to the nationwide lockdown imposed in March this year to curb the spread of the Covid-19 pandemic. The lockdown threw economic activity off kilter, leading to a production halt in most industries absorbing steel, primarily automobiles and construction.

However, for the whole of FY20, steel output moved up by 4.2 per cent, registering the best performance among eight