Global steel output declines in April
India's output rose 2.1%, but declined by 3.6% sequentially
The financial year 2015-16 has started on a dull note for global steel producers, with crude steel production in April declining 1.7% over a year ago, according to the World Steel Association. The sequential decline was worse at 1.9% over March. In Asia, China’s output fell by a relatively modest 0.7% and by 0.8% over March. Japan and South Korea saw sharp cuts.
Among other large regions, the Commonwealth of Independent States (CIS) and North America also saw sharp cuts. The European Union saw a 0.3% increase, though output declined sequentially.
India’s output rose 2.1%, but declined by 3.6% sequentially. Data from the Joint Plant Committee indicates that domestic finished steel production grew only 0.5%, but within this, large integrated steel producers have seen output decline. Steel exports are declining and imports are rising, which had put pressure on domestic steel prices in the March quarter. This had affected steel company earnings. If the current trend continues, it may hit June quarter earnings as well.
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