Stainless steel production drops 19 pc to 3.17 MT in 2020: ISSDA

Stainless steel production in the country fell 19% to 3.17 million tonnes (MT) in 2020, according to the Indian Stainless Steel Development Association (ISSDA).

Despite the pandemic-induced lockdown during the April-June 2020 period, which halted production in the country during the quarter, India continued to be the world’s second-largest producer of stainless steel.

“The production of molten stainless steel in India stood at 3.17 MT in 2020 (calendar year 2020), registering a decrease of 19% from 2019,†ISSDA said in a statement.

Indian stainless steel production for 2019 was recorded at 3.93 MT.

“Stainless steel production and demand experienced a V-shaped recovery in India from July 2020 after the government began to ease the lockdown,†the statement said.

He said that the global production of stainless steel smelters fell 2.5% to 50.9 MT in 2020 from 2019, according to the latest data released by the International Stainless Steel Forum (ISSF ) based in Brussels.

China remained the top producer accounting for over 50 percent of global 30 MT stainless steel production. It is the only country to record a production increase of 2.5% in 2020 compared to the previous year.

All other regions, including Europe, the United States and Asia, saw their production drop in 2020 due to the impact of the pandemic.

ISSDA President KK Pahuja said, “The performance of the domestic stainless steel industry is fair, given the severe impact of the pandemic across the entire value chain. The industry’s efforts as well as the government’s stimulus measures have contributed to a gradual recovery after July 2020. â€

He also added that as the economy gradually regains momentum, the government needs to address sector-specific concerns to provide further stimulus. “The revocation of countervailing duties on imports from Indonesia and China may impact the current growth of the sector in this calendar year and again lead to the dumping of stainless steel.”

To urgently revive the Indian stainless steel industry, ISSDA urged the government to adopt a multi-pronged strategy to boost local manufacturing and curb unwarranted imports into the country.

The ISSDA said it expects a glut of stainless steel imports at a time when the domestic industry struggles to cope with the disruption caused by the pandemic.

“India is a large and lucrative market, and with the suspension of duties, China and Indonesia are expected to resort to aggressive dumping.

“For an import-intensive industry, this could worsen unemployment in the sector, especially in MSMEs, which constitute a third of the capacity,” the statement said.

Established in 1989 by leading stainless steel producers, ISSDA was established with the explicit aim of diversifying stainless steel applications and increasing usage volumes in the country.