Steel production in India continues to grow

Steel production in India posted the largest growth in at least a year as producers increased capacity in anticipation of rising demand in Asia's third largest economy.

Output in August climbed 12 percent to 8.24 million tonnes from a year earlier, the largest increase since August 2015, according to data provided by the Ministry of Steel. Steel product demand in India rose 1 percent to 6.97 million tonnes, while imports fell 36 percent to 619,000 tonnes.

Leading manufacturers in the country such as JSW Steel Ltd. and Steel Authority Ltd. are aiming for record production for the fiscal year ending March 31, 2017, amid demand growth projections of as much as 5 percent. Metallurgists may increase their import market share, which is falling for the fifth month after the government extended import restrictions in August to protect domestic factories from cheaper exports from China, the world's largest producer, Russia, South Korea and Japan.

India extended the pricing mechanism for some imports by two months until October 4, and levied anti-dumping taxes on hot rolled and cold coiled steel.

Exports rose 87 percent to 680,000 tons in August from a year earlier, according to preliminary data from the ministry. During the period from April to August, imports decreased by 35 percent to 3.01 million tons, production increased by 7.9 percent to 40.5 million tons, and consumption increased by 1.3 percent to 33.74 million tons, as they say. in the statement.