India''''s steel demand to beat global trend; grow 2 pc in 2009

LONDON: Bucking the global trend, India''s steel consumption is likely to rise by nearly 2 per cent to 53.5 million tonnes in 2009, the World Steel Association has said.

In its short-range outlook for global steel sector, the Association representing 180 steel producers across the world, said that India''s steel consumption is estimated to grow by 1.7 per cent to 53.5 million tonnes (MT) this year against 526 MT in 2008.

"India is projected to have a positive growth of (about) 2 per cent for apparent steel use in 2009," a statement from the World Steel Association (WSA) said.

It however, did not ascertain the reasons for the growth though experts said it would be mainly on account of improved demand from automobile and construction sectors.

Globally, WSA has forecast steel consumption declining by 14.9 per cent to 1,018.6 MT as against 1,197 MT a year-ago.

The association, however, expects the demand to stabilise in latter part of 2009, leading to a mild recovery in 2010.

"... (The) improvement in steel consumption for the second half of 2009 will depend on the effects of government packages, the continued stabilisation of financial systems and a return of some consumer confidence," WSA Economics Committee Chairman Daniel Novegil said.

May 5, 2009 11:11
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