The domestic production of finished steel during April 2021 fell 23 per cent on a month-on-month basis to 7.01 million tonnes, while consumption decreased 26 per cent to 6.73 million tonnes, according to the monthly report by the Ministry of Steel.
The production of crude steel also fell 21 per cent on a month-on-month basis to 7.96 million tonnes during April. “This decline is in part due to the seasonal factors due to which production and consumption of steel in April is, in general, lower than that in March and also partly due to the second wave of Covid-19 adversely affecting economic activities,” the Ministry said.
During May 1-10, steel plants enhanced their production capacity of liquid medical oxygen by 48 per cent to 4,191 tonnes, “due to several initiatives and technical modifications undertaken by them like reduced production of liquid nitrogen and liquid argon, reduced usage of gaseous oxygen, etc.” it added.
“The steel plants have reduced their safety stock of liquid medical oxygen from the prescribed 3.5 days to 0.5 days, resulting in approximately 20,000 tonnes in their storage tanks,” it said.
The domestic production and sales during April 2021 showed a sharp growth on a year-on-year basis “over the lower base performance during April 2020 lockdown period,” the report said. However, the April 2021 levels remained lower than during the corresponding period of the pre-Covid fiscal years 2019-20 and 2018-19.
Iron ore prices soar
During April 2021, the price of iron ore lumps rose 30 per cent on a month-on-month basis to ₹6,950 per tonne. The price of iron fines rose 17.4 per cent to ₹5,060 per tonne.
This has been “due to domestic demand-supply situation as well as increasing prices in international market during the month,” the report said. Both global and domestic iron ore prices have soared manifold during the past twelve months of strong upcycle in several commodity prices.
The retail Mumbai prices of Rebar, HRC and CRC steel during April increased by 7 per cent, 8 per cent and 9 per cent, respectively, the Ministry added.
Steel Authority of India Ltd’s production of hot metal, crude steel and saleable steel during the month stood at 1.37 million tonnes, 1.23 million tonnes and 1.25 million tonnes, respectively. Iron ore production and sales by NMDC Ltd stood at 3.13 million tonnes and 3.09 million tonnes, respectively.