Posted on 30 Mar 2018
India is second on the list of world’s largest steelmakers, following China. India had been on the third spot for three years till 2017. Japan’s steel output fell by 0.5 percent to 8.2 million tonnes (mt) in February, corresponding to India’s staggering 3.4 percent rise to 8.4 mt steel output, making India supersede Japan, reported Financial Express.
India’s rise made its production highest not just in February, but also in the January-February period. All the months preceding January, Japan had been leading. China is way ahead of both the countries in production, but India and Japan have always been within inches of each other in the market.
In 2017, Japan’s production was 104.7 mt and India’s number was 101.4 mt. The gap was wide in 2016 at 9.3 mt, and 16 mt in 2015.
India had grown in its steel production in the year 2017 by almost 6.2 percent, and Japan’s steel industry had slumped. India’s chances of becoming 2nd in the list had been high in 2018.
The Indian government has been very ambitious with its steel production, with it targeting 200 mt annual installed capacity from the 128 mt presently. The consolidation of the Indian steel sector will help strengthen the capacity utilization, synergy improvement and economies of scale.
India took over the USA in 2015 to become the third in the world after a long stay at the fourth position.
According to World Steel Association, China recorded a growth in 5.9 percent, producing 64.9 mt steel in February 2018. In the EU, Italy’s production was 2.1 mt and South Korea produced 5.4 mt. The USA produced 6.4 mt steel in February 2018.
Capacity utilization ratio of the world steel industry was 73.3 percent.
