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World Steel Association (WSA) has slashed its projection for India's steel demand growth to 3.4% for the current year from the earlier forecast of 5.9%.
"In India, steel demand is expected to grow by 3.4% to 74 million tonnes (MT) in 2013 following 2.6% growth in 2012 as high inflation and structural problems are constraining steel using sectors' activities," the industry association said in its short-range outlook relased today.
WSA had in April projected India's steel demand growth at 5.9% for 2013, pinning hopes on monetary easing and investment activities.
The demand growth projection for the next year has also been reduced to 5.6% from 7% projected earlier.
"In 2014, steel demand is expected to grow by 5.6% helped by accelerated attempts to implement structural reforms," it added.
However, it has increased the projected global steel use to 3.1% to 1,475 MT for 2013. In 2014, it forecast that world steel demand growth rate to be even higher at 3.3% to reach at 1,523 MT. Global steel use grew by two% in 2012.
The global demand growth would be fuelled by China, where demand for the country was forecast to grow by six%.
"Thus, despite steel demand growing by only 0.7% in the rest of the world, total global steel demand will grow by 3.1%," WSA said.
In a separate statement, WSA said it has appointed POSCO Chairman and CEO Joon-Yang Chung as its new Chairman for a year.
