India’s total output of steel has witnessed a slight increase of 0.9% to 6.45 MnT in June 2013 which was 6.39 MnT in the same period last year. Whereas, the world’s total output has reached around 132 MnT in June 2013, up 1.9% compared to the total output in June 2012.
Demand for steel in the global market is thinning slightly. On the other hand in India, the demand for steel has been curbed and not decreased. The proposed projects for infrastructure, highways, power plants, railways and construction activities have not yet embarked which resulted in poor demand.
According to Mr. Kameswar Rao, Executive Director, PWC (Energy, Utilities & Mining), “In India, there exists latent demand for steel due to lack of new infrastructure projects. However, China continues to grow because of its construction and infrastructure activity. This is a fundamental difference between India and other regions which are experiencing low demand.”
Asia solely showed an increase of 5.5% for the first six months steel output in 2013, while other countries did not show much growth comparatively. Steel output from China increased by 4.6% and was around 64.7 MnT in June 2013 compared to the same period last year. Whereas in Japan the total output of crude steel was up by 0.9% to 9.3 MnT in June 2013, in comparison to the production in June 2012. On the other hand South Korea produced 5.5 MnT in June 2013, which was down by 5.4% from the output in June 2012. Even the total production from North and South America had declined by 5.8% and 4.6% respectively for June 2013 in comparison to the same month last year.