Responding to cost pressure and greater demand, domestic steel producers have raised prices by Rs 1,000-1,500 a tonne across products for January.
Iron ore miners have increased prices by Rs 600 per tonne and so this increases the cost of production by Rs 1,000 a tonne. Hence, steel producers have hiked prices, V R Sharma, managing director, Jindal Steel & Power (JSPL), told. With this, domestic steel players have raised prices for the fourth consecutive month in a market in which consumption is expected to pick up after the government announced a mega push for infrastructure projects.
Coal India posted the first decline in annual shipments in at least six years as demand from power producers weakened and its production was hit by heavy rains earlier in 2019. Shipments fell 3.8% in 2019 from a year ago to 580.8 million tonnes, according to Bloomberg calculations.
According to CIL, on a monthly basis, shipments rose 1.9% in December from last year to 53.63 million tons. Output climbed 7.2% to 58.02 million tonnes
Coal India Ltd , which registerted negative growth in production of the dry fuel for past few months, has posted over 7% growth in December with 58 million tonne output, sources said. CIL had produced 54.13 million tonne in corresponding month of 2018.
According to provisional data, CIL has produced 388.39 million tonne of coal during April-December period of the current fiscal, down by 5.83% from 412.45 million tonne in the first nine months of the last financial year, CIL sources told.
Jindal Steel and Power Ltd (JSPL) said its domestic production of crude steel and related products for the quarter ended December 31, 2019 stood at 1.61 million tonnes, up 22% from the year ago period. The company’s crude steel output had stood at 1.32 million tonnes in the corresponding period last year.
During the third quarter of FY20, JSPL recorded a growth of 30% in sales at 1.66 MT, as against 1.27 million tonnes a year-ago.
The country’s manufacturing sector activity improved in December driven by new orders that rose at the fastest pace since July as companies ramped up production and resumed hiring efforts, a monthly survey said.
Notwithstanding the improvement in operating conditions during December, companies were cautious regarding the annual outlook of 2020 and this could have an impact on job creation and investment in the year, the survey said.
The IHS Markit India Manufacturing PMI rose from 51.2 in November to 52.7 in December, registering the “joint-strongest” improvement in 10 months.
According to Pollyanna de Lima, Principal Economist at IHS Markit, Factories benefited from a rebound in demand, and responded by scaling up production to the greatest extent since May. There were also renewed increases in input purchasing and employment during December.