Adverse effects of lockdown on steel demand and production in the country

- New demand slows down amid rising prices: Oxygen used in steel production transferred for medical use

The steel market has recently seen a significant shift in various equations. The world market has also seen significant fluctuations in prices. After 2030 at home, now even in 2021, the impact of the Corona infestation and the state of lockdown is still being felt in the steel industry and trade market. China's role in the world market has been key. China's economy is now recovering from the Corona's blow, and China's buyers have recently been seen reactivating in world markets. Meanwhile, demand for steel as well as production has lagged in the wake of the Corona-lockdown, according to recent indications from the domestic steel-iron industry. Finished steel production in the country declined by about 3 to 4 per cent in April and is likely to remain so in May. In April, total domestic steel production fell to around 4 million tonnes, experts said. However, the demand for steel has also declined by about 3 to 4 per cent during this period and such demand has come down to around 3 to 4 lakh tonnes. Thus, on the one hand, there has been a decline in production, while on the other hand, there has been a decline in consumption, steel market sources said. In addition to domestically finished steel, there has also been a decline in the production of crude steel. According to sources, crude steel production fell by about 30-31 per cent to around 5-7 million tonnes during the period. Such a situation has been seen in the wake of Kovid and lockdown. However, some sections of the market were pointing out that such a situation has arisen due to other reasons besides this. The effect of seasonal factors has also been observed. Have come down lower than in March. However, compared to April last year, such figures for April this year have gone up overall.

Meanwhile, iron ore prices soared in April. Such prices rose by about 5 to 20 per cent and were significant in April as compared to March. The price of iron ore lump rose to close to Rs 2,000 per tonne. Iron ore prices jumped 15 to 18 per cent to Rs 2,000 a tonne during the period. Iron ore prices have been steadily rising in the last 11 to 12 months in the world market as well as at home. Domestic Thabat, HRC, CRC steel prices have gone up by 3 to 4 per cent in April. Market analysts said the impact of higher steel prices has been felt on demand recently. There has been a recent setback in the steel market demand from the consumer industries. Analysts are predicting a sharp drop in steel demand in the quarter ending June now compared to the March quarter in the country. Automobiles, Consumer Durables, Construction, Infrastructure Vs. The steel market has seen a decline in purchases from various sectors. However, on the one hand, domestic demand has been slowing down and on the other hand, overseas demand is being maintained by some sections of the market. However, global freight rates have risen and container availability has remained tight. Experts are also fearing the impact of this on steel shipments overseas. Meanwhile, the market price of steel has gone up. The market price of domestic hot-rolled coil has gone up by about 5 to 20 per cent in the last 11 to 12 months and is going above Rs 2,000 per tonne. Rear steel prices have recently risen to Rs 2,000 per tonne. Given that the number of corona cases in the country is now declining, the market class is also hoping for a renewed surge in demand for steel and iron ore in the country if such cases are significantly reduced and there is widespread relief in lockdowns. However, there is another worrying news from the world market.

Chinese markets have recently seen a sharp decline in steel futures prices. Experts fear that if this affects the world market, it will also have a negative impact on overseas steel shipments from India. The Chinese government has recently been very active in curbing rising steel prices and rising prices. Meanwhile, due to the recent shortage of oxygen in medical use in the country, many steel producers have reduced the oxygen consumption in steel production and sent the saved oxygen to medical use, which has led to a recent decline in steel production in the country, experts said. Exports of iron ore from India have also increased and this has led to concerns among the country's steel producers recently. Iron ore is used as a predominant material in steel production. Exports of such iron ore from the country have recently increased by about 5 to 20 per cent in the four months from January to April. During this period, such exports have increased to about 3 to 4 lakh tonnes and about 80 per cent of these exports have gone to China alone.