Growth in demand for steel exceeded output growth in April 2012.While demand stood at 5.6 million tonne in April, output grew only 5.2 per cent. In April 2011, demand grew 5.2 mn t.
Real consumption of steel in April grew 7.7 per cent over the same month of 2011-12, data from Joint Plant Committee, the government body that tracks steel metrics in India, shows.
Though the numbers were only for April, these hinted at a positive trend for the sector in 2012-13. Demand growth remained subdued throughout 2011-12. The sector was expecting 8-10 per cent growth, in line with growth trends of earlier years. However, the number stood at 6.8 per cent.
Tata Steel’s chief financial officer, Koushik Chatterjee, said the steel sector globally was expected to grow at 6.9 per cent, though there were some signs of softening. Hence, the 7.7 per cent demand growth in April is a positive signal.
Tata Steel is positive on the demand story this year. It expects to produce one mn t more steel than it did last year. JSW Steel also said in its guidance that it would produce 8.5 mn t steel this year, against 7.43 mn t in 2011-12.