After months of lower growth the production of steel has picked up pace. IISI (International Iron and Steel Institute) shows that steel production is returning to previous rates of growth as steel makers push up their production in view of the recovery in prices. For 2 consecutive months India steals the show with higher growth rates. Other producer countries show a decline intheir production. Ommiting the production figures for China and India the quantity of steel produced shows a decline of 3.1% year on year. Recovery in steel prices has boosted the confidence of several producers who have raised production. China and India are an exception to other major producers that are showing a decline in their steel production. Indias output of 3.6m tonnes in July is an increase of 39% over the production in last year. This is the second continuous month that India has overtaken Chinas growth rate, though from a much lower base. Comparison of China with India cannot be done because of their disproportionate sizes. Chinese steel Industry is almost 10 times the size of the Indian Industry. These are the only 2 countries that are showing major production in steel year by year. The concentration of production in these 2 countries is an indicator of the changing dynamics of the steel industry. Indias production has increased on an average of nearly2.5% per month over the last eight months. Chinas production in steel has increased from by1.8% every month during the same period. Overall it can be said that Indias increase is more than slightly by 0.1% of world production per month as compared to chinas whose production in steel is half % more than world production by every month but India
rules the roost.