Thursday, May 21, 2009

World steel output falls 24% in Apr but INDIA bucks the trend

World steel production fell nearly 24 per cent in April, reflecting the recessionary pressure in the West, but India bucked the trend recording about three per cent growth in output of the key industrial intermediary.

The global crude steel output plunged to 89 million tonnes in April as countries such as China, Germany, Japan and the US slipped into a negative terrain amid slackening demand, data released by the World Steel Association said today.

Indian companies, however, managed to sail through the crisis and produced 4.25 million tonnes of steel as against 4.13 million tonnes in the corresponding month last year, according to data of Steel Ministry's Joint Plant Committee.

Steel Secretary P K Rastogi attributed the increase in April produce to robust demand from consuming sectors as also clearing of inventories by steel companies.

"They (companies) have cleared their inventories and are producing more. It is a good sign for the sector," he said.

Contrary to the growth registered by India, major steel-- producing nations such as China, Japan, Germany, Turkey and the US saw the output declining by up to 53 per cent.

The US saw a maximum 53.4 per cent dip in steel output at 3.9 million tonnes followed by Germany and Japan, which reported 53.1 and 43.6 per cent dip, respectively.

In the first four months of 2009, global steel output fell 22.7 per cent to 354 million tonnes. Asia's contribution to it also dipped by 9.5 per cent to 231 million tonnes.

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