Steel sector shines on output growth

The domestic steel sector is booming on account of rise in domestic demand for steel. Both private and public steel entities have posted growth in output. SAIL, JSW Steel, Tata Steel posted robust growth in output in 2016-17.

JSW Steel met its target of 15.80 million tonnes output in 2016-17, which is growth of 26 per cent YoY. The rise in output was led by higher demand for flat rolled steel, which saw increased output of 23 per cent to 11.4 million tonnes.

Tata Steel increased its market share to 44 per cent after achieving highest ever sales at 10.94 million tonnes, up by 15 per cent YoY. The company also witnessed highest automotive sales at 1.54 million tonnes, a growth of 9 per cent YoY.

Steel Authority of India (SAIL) also posted good numbers as its production saw growth of 12 per cent leading to 8 per cent rise in sales and three-fold increase in exports in 2016-17.

The steel sector has seen revival in second-half of 2016-17 on account of rising industrial demand, which was also supported by strong orders from government infrastructure projects. Industrial and automobile sectors faced the brunt of demonetisation, which resulted in export of excess steel stocks. As the manufacturing activity has touched five-month high, industrial demand is expected to move north, further aiding steel output growth in FY 2017-18