Indian steel consumption might expand by 2-3% in FY14

Steel consumption in the country might clock a growth of 2-3% in 2013-14, an industry expert has said.

 

"The steel industry is facing sluggish consumption growth. We expect some improvement in Q4 period and the sector may see a growth of 2-3% in 2013-14," Institute for Steel Development & Growth (INSDAG) Director General Sushim Banerjee told PTI.

 

The steel demand in the 10 month period (April 2013- January 2014) increased by only 0.5-0.6%.

 

Banerjee said traditionally in the Q4 period (April-March) demand and price remained bouyant, but this year long products were witnessing price pressure after slump in steel scrap price in the international market.

 

He said crude steel production in April 2013-January 2014 period was 4.6% and for the full fiscal FY'14 it was projected to remain at around five%.

 

Asked about the final report on the steel policy that aimed to increase Indian steel production capacity to 300 million tonnes by 2026 from 96 million tonnes now, Banerjee said he was not sure and it might come sooner as elections were knocking on the doors.

 

Despite sluggish demand and production outlook in FY'14, the scenario was likely to improve in 2014-15.

 

"The industry expects some 10 million tonne capacity to be added from greenfield capacity and greater capacity utilisation from the industry," Banerjee said.