Steel demand to rise as govt looks to increase public sector spending

After a subdued trend so far this financial year, the country's steel consumption is likely to rise in the coming months with increase in public sector spending — especially in roads, power, water and gas pipeline projects.

Data compiled by the Joint Plant Committee of the steel ministry shows consumption at 26.2 million tonnes in April-July (first four months of this financial year), a marginal 0.5 per cent increase over the same period last year. Crude steel production at 31.8 mt was five per cent higher.

Anticipating the trend, primary steel producers have raised their product prices by Rs 3,000 a tonne,