Steel 360 - January 2022

In dieser Ausgabe

Another calendar year draws to a close. The fortunes of the Indian steel
industry wavered. The Chinese export rebate cancellation was a major
influencer. The second Covid surge and ensuing oxygen crisis stifled crude
steel production for a month. Even as output bounced back, renewed
post-lockdown industrial activity led to a sudden mismatch in power
demand and generation, leading to domestic power shortfall, which
was subsequently alleviated by increased coal production by Coal India.
Indian mills exhausted and exceeded their Europe exports quotas in the
first five month of the year to stay afloat during the Covid surge, while the
European Commission extended safeguard measures for another three
years. Auto production was hit by the semi-conductor shortage while
mills intermittently raised prices, in tandem with their export prospects.
China’s production curbs, coal shortage and the global energy crisis and
surging prices thereof made headlines.
CY’22 is beginning in the throes of Omicron. But this too shall pass.
Domestic demand in flats is expected to be better as the chip shortage
wanes while longs may also see higher demand on the back of the
government’s infra push. However, exports need to sustain since
domestic demand may not absorb the incremental crude steel production
in CY’22, which may touch 124-125 million tonnes.
Steel360 wishes its readers a Happy New Year!