Steel Furnaces in India Run Hot

Several steel producers in India have reported production figures for December or the fourth quarter of 2009 that indicate the steel industry has gained momentum in that nation.

According to a report from Industrial Info Resources (IIR), Sugar Land, Texas, the government-operated Steel Authority of India Ltd. has reported a 32 percent increase in sales in December of 2009 versus the same month in 2008. The company, with a yearly output of 13 million tons, has a 25 percent share of India’s steel market, according to IIR.

In the third quarter of its fiscal year, running from October through December of 2009, sales grew 23 percent year-over-year, primarily driven by increased consumption in the construction sector.

Mumbai-based Tata Steel Ltd. has recorded monthly crude steel production of more than 600,000 tons for December 2009. The firm registered an increase in production across a range of finished goods, with hot steel output at 650,000 tons, saleable steel output at 593,000 tons, and sales of flat products up by 90 percent year-over-year. “The company’s steel plant is now functioning at 7.2 million tons per year, compared to its nameplate capacity of 6.8 million tons per year,” reports IIR.

JSW Steel Ltd., also based in Mumbai, has registered 50 percent growth in its sales figures for December 2009 compared to the previous year, while Kolkata-based Ispat Industries Ltd. also has reportedly benefitted from revival of demand in the automotive industry.

India’s demand for steel is growing from 8 percent to 10 percent at an annual rate, with demand from the infrastructure and auto segments prompting much of the growth, according to IIR. Many steel companies have hiked prices 3 percent to 5 percent in early 2010, according to the report. “Prices are likely to surge further, as manufacturers have begun to build steel inventories in anticipation of competitive prices once demand picks up,” forecasts IIR’s Bangalore, India, office.