ArcelorMittal India FY20 Steel Output At Record Level Of 7.23 Mn Tonnes

ArcelorMittal Nippon Steel India (AM/NS India) has clocked a record crude steel production of 7.23 million tonne (mt) in FY20, up 5 per cent from last year despite challenging economic conditions, including the fallout of Covid-19, in the fourth quarter of the financial year.

During the year, the company’s blast furnace set a new benchmark in productivity through our in-house innovation, which enabled it to operate consistently over its rated capacity, said AM/NS in a release on Thursday.

Pellet production reached 11.63 million tonne during the period, up 9.4 per cent from 10.63 million tonne the previous financial year.

Like many other countries, India’s efforts to contain the spread of the coronavirus disease led to a nationwide lockdown from March 25. Though the Centre and the states designated steel production as an essential service, constraints on the movement of people, logistics and downstream industries forced a significant production cut to prevent build-up of surplus inventory.

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The entire industry, including AM/NS India, has also been impacted by weakening demand from large steel-consuming sectors such as automotive and construction, it said.

“Despite price and demand volatility, AM/NS India made great strides to improve its overall performance and operational efficiency. Our record performance would have been even stronger,” the release quoted Dilip Oommen, chief executive officer of AM/NS India.

The company has undertaken several steps to achieve stability of its operations, coupled with detailed planning so that it is well-prepared to ramp up operations when the situation improves, said AM/NS.