Higher Output, Demand Aid Prices
Prices rose because of higher production in North America, South America, European Union and the Middle East where steel scrap is recycled in electric arc furnaces.
The global crude steel production excluding China surged 35.8% over a year earlier and 6.2% from the preceding quarter in the three months ended June, HEG’s management said in a conference call.
All major steel-producing countries registered a sequential growth except India, where output declined 4.4% because of the second wave.
Domestic demand for steel and electrodes, however, started rising from June as lockdowns were eased.
Demand for steel and electrodes is expected to rise in both domestic and international markets, KK Bangur, chairman at Graphite India, said in an analyst call after April-June earnings.
Global crude steel production between January and June surpassed crossed 1,000 million tonnes, up 14% over a year earlier, according to World Steel Association data. The output outside China jumped 18%, while it rose 11% in China.
What is encouraging is that the rest of the world steel production has outpaced growth in China, Ravi Jhunjhunwala, chairman, managing director and chief executive officer at HEG, said in an interview to BloombergQuint. This augurs well as the rest of the world produces nearly half the steel via electric arc furnaces, he said.