India the only country in the world’s top five to record an increase in steel production in April, ET Infra

NEW DELHI: India is the only country among the world’s top steel-producing countries to record an increase in steel production in April this year, according to data compiled by the World Steel Association.

India, the world’s second-largest steel producer after China, produced 12.1 million tonnes of steel, up 3.6% from the same month last year.

According to economists, the increase in steel production in India reflects the higher level of economic activity taking place in the economy.

Major infrastructure projects in the road, rail and port sectors implemented by the government to boost economic growth and create jobs in the country use large amounts of steel as raw material.

Similarly, the rising demand for products such as passenger cars, two-wheelers and commercial vehicles in the economy also leads to an increased demand for steel as a raw material.

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India has emerged as a bright spot amidst the global slowdown and the steel sector is a reflection of this.

World Steel Association data shows Japan produced 7.1 million tonnes (MT) of steel, down 2.5%.

The United States produced 6.7 tons, down 2.8%.

Russia was estimated to have produced 6.2 tons, down 5.7 percent, and South Korea produced 5.1 tons, down 10.4 percent.

China, which has massive overcapacity in steel and has faced a U.S. tariff barrier on its exports, saw a 7 percent drop in production to 85.9 million tons.

There are serious concerns around the world that China may now resort to dumping surplus steel at low prices to other countries due to the loss of the US market.

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