India’s steel consumption for the period April-January 2009-10 provisionally rose to 45.93 Million Tonnes on the back of soaring demand from the infrastructure and automotive sectors.
The Indian Ministry of Steel has released provisional data for steel consumption for the period April-January of current financial year (2009-10). As per the figures, 45.93 Million Tonnes of steel was consumed during the period, an increase of 7.9% over the same period a year ago (April-January 2008-09) when the steel consumption stood at 42.59 Million Tonnes, as reported by
Business Standard.
The tremendous increase in steel consumption is accredited to the government focus on infrastructure development like highways, bridges, ports, etc, which have increased steel demand in the country. Besides, the power plants set up across the country have fueled steel demand in the power sector. The Indian steel industry has also been supported by sectors like automobiles and white goods, which have witnessed unprecedented growth on the back of soaring demand and high income level. High-income levels have made white goods affordable for Indians, which in turn, boosted steel consumption.
According to a market research report “
Indian Steel Industry Outlook to 2012” by
RNCOS, the automotive steel consumption is expected to reach 4.4 Million Tons in 2011-12 against 2.9 Million Tons in 2007-08. Besides, the demand from other sectors will also spur in coming years.
Moreover, the domestic steel production rose 3.3% during the ten months period ended in January 2010 but it was insufficient to meet the consumption level. Hence, the country has to import steel to offset consumption and production gap. The steel import rose 18.5% to 5.9 Million Tonnes during April-January 2009-10, which increases the availability of commodity in the market and puts pressure on domestic prices.
The export of steel from India continued to slip downward and fell 34.1% to 2.39 Million Tonnes during April-January 2009-10. This emphasizes on the fact that the western markets are still bearing the brunt of economic crisis of 2008-09.
According to a Research Analyst at
RNCOS, “India has an immense potential to increase its steel consumption. Its current per capita consumption stands at 40 Kg as compared to 250 Kg in China, 100 Kg in Brazil and a global average of 198 Kg. Thus, India is expected to become the most favorite investment destination for steel players in upcoming years.”
Related Market Research Reports:
US Steel Industry Outlook
UAE Steel Industry Analysis
China Steel Industry Forecast till 2012 
