Steel consumption inches up 0.7% in Apr-Feb

India had consumed 66.8 MT steel during corresponding period last fiscal

Slow economic growth weighed down on India's steel consumption which expanded by just 0.7% during April-February period of current fiscal at 67.253 million tonnes (MT) over the same period last fiscal.

The country, the fourth largest steel producing destination in the world, had consumed 66.78 MT steel during corresponding period last fiscal, Joint Plant Committee, a Steel Ministry Unit, said in its monthly report today.

"India's real consumption of total finished steel was up by 0.7% year-on-year in April-February FY14, impacted primarily by the slowdown in the domestic economy and a sharp decline in imports," JPC said.

India's economy grew below expectations at 4.7% in October-December on falling output in the manufacturing sector. The country's GDP had expanded 4.8% in the July-September quarter and 4.4% in April-June. Growth in the first nine months (April-December) was 4.6%.

"The low growth rate in domestic steel consumption indicated that base level demand conditions continued to be weak during the current fiscal so far," it said.

India's steel imports were down 31.1% during the April-February period, but exports were up 8.1% at 5.045 MT.

Consumption of finished steel was up 1.8% in February at 6.174 MT, encouraged by a 5.3% rise in production for sale and a 36.8% decline in export. There was a 38.3% decline in imports.

"Production for sale of total finished steel at 77.322 MT registering a growth of 4.1% during April-February of FY'14 encouraged by a 9.8% growth in case of the main producers," JPC said.

Production of total finished steel grew by 5.3% in February, 2014 at 7.016 MT over February 2013. Main producers contributed 10% increase while there was a 5.5% rise in case of others.