Domestic steel demand seen 5.3% up at 85.8 mn tonne in FY17

Consumption to move up further to 90.6 million tonne in FY18

Domestic demand for steel is expected to grow 5.3 per cent in the current fiscal to touch 85.8 million tonne as consumption from construction and capital goods is seen higher supported by higher infrastructure spending, Indian Steel Association said today.

"Government initiatives by way of increments to its employees and public sector staff is likely to boost automotive and consumer durables demand in the current financial year," said the association in its Short Term Domestic Steel Demand Outlook.

In addition, a pick-up in rural income due to good monsoon and government initiatives to boost rural income are also expected to help in creating sustainable demand in the region. Railways and intermediates sectors are also expected to witness growth and in face gain momentum from first quarter of 2017.

The association sees consistent rise in domestic demand for the next eight quarters taking 2017-18 demand to 90.6 million tonne, achieving a growth of 5.6 per cent from previous year.