Indian long steel manufacturer, Kamdhenu’s steel sales volumes rose by 37pc to 563,000mt in Q1 (Apr-June) compared to the prior year but sales volume declined by around 20pc compared to Q4 FY21, according to the company’s press release.
The baseline figure for steel volume for the previous year was low due to the nationwide lockdown imposed by the Indian government to curb the spread of COVID-19. As a result, domestic steel mills had reduced production amid weak demand.
The company said, its Q1 sales and production remained affected as compared to the previous quarter due to lockdowns imposed by various states to prevent the spread of the second wave of COVID-19.
The steel manufacturer had witnessed a gradual increase in demand from early June, capacity utilisation has also increased since then.
The company’s royalty income has also increased by 46pc to $2.88mn in Q1 compared to the prior year.
India’s steel demand could pick up in the upcoming months as consumption remains strong, said Chairman and MD of Kamdhenu, Satish Kumar, adding, demand for steel products, including rebar could be boosted by the government’s push towards infra spends, affordable housing and speeding up of real estate projects.
The company has operational capacity of around 3.8mn mt of steel rebar, 500,000mt of structural steel and 250,000mt of colour coated sheets.