PTI reported that with demand accelerating from automobile and construction sectors, India's steel consumption increased by 6% to 8.22 million tonne in the April to May period over the corresponding months last year.
According to figures of the steel ministry, the steel consumption in April to May 2008 stood at 7.76 million tonne.
On the back of firming up of demand, the domestic steel production increased by 2.4% to 9.24 million tonne as against 9.02 million tonne. Barring RINL, SAIL and TATA Steel reported an increase in saleable steel output.
During the months under review, imports went up by 6% to 1.57 million tonne, from 0.97 million tonne, while exports plunged by a steep 40% to 0.4 million tonne as against 0.7 million tonne. Of the total imports, the contribution of hot rolled coils, a key steel item was 28% at 0.5 million tonne compared with 0.74 million tonne.
Mr PK Rastogi steel secretary said the spurt in consumption of steel, coupled with the surge in imports, are indicators that there is demand for the commodity in the Indian market. He said "This throws open an optimistic scenario for the Indian steel sector wherein production and consumption could be between 5% and 10% in the current fiscal."
However, World Steel Association has forecast steel demand in India to grow by about 2% in 2009-10, while for rest of the countries its projection is a negative growth of 15%.
Source : Press Trust of India