Steel consumption to rise 9% in 2010: Survey

The Economic Survey today projected domestic steel consumption to grow in the range of 6-9 per cent in 2010 primarily on the back of improved demand from construction and automobile sectors. "Indian steel outlook for 2010 continues to be positive, since Indian steel consumption is expected to be rising at 6-9 per cent during the current year, on account of higher demand from the real estate, construction and automobile sectors," the Survey tabled in Parliament said. However, the projected growth volume was not mentioned. Steel consumption for April-January period has risen 7.9 per cent to 45.93 million tonne over the same period in 2008- 09, a fiscal which saw demand as well as prices of the commodity falling by more than 50 per cent in the second half. "However, recovery gathered strength during 2009-10 and the Indian steel industry appears to have successfully overcome the effects of the global economic slowdown," the Survey added. Domestic steel companies including SAIL, Tata Steel, JSW saw their production surging to pre-slowdown levels and steel prices also maintained an upward trend on the back of firming demand and rising input cost pressure. "The strong growth in GDP in the second quarter of the current fiscal and the Index of Industrial Production (IIP) during April-November 2009 suggests that the demand side of the steel industry is back on stable footing. The IIP in April -November stood at 7.7 per cent against 0.6 per cent in the year ago period.