By Debarati Roy
Oct. 16 (Bloomberg) -- India’s steel consumption gained 5.7 percent in the financial first half, spurred by demand from carmakers, appliance manufacturers and builders of rural homes.
Consumption rose to 26.49 million metric tons in the six months ended Sept. 30 from a year earlier, steel secretary Pramod Rastogi said today in a phone interview from New Delhi. Production rose 2 percent to 28.49 million tons, he said.
Increasing demand for automobiles, refrigerators and air conditioners and rising farm income are boosting sales in the world’s second fastest-growing major economy. India’s industrial production for the period April to August rose 5.8 percent from a year earlier.
Uttam Galva Steels Ltd., the Indian venture of ArcelorMittal, plans to increase production by 25 percent in the next financial year to meet domestic demand, Director Ankit Miglani said on Oct. 14. Annual demand in India for galvanized steel, used to make roofs and automobiles, is growing as much as 19 percent, he said.
“Rural demand has remained firm over the past several months,” Miglani said in the Oct. 14 interview. “From roofs to furniture to cars, the use of steel has increased.”
Steel imports rose 1 percent to 3.22 million tons in the first half, while exports slumped 43.6 percent to 1.34 million tons, Rastogi said.
The World Steel Association, comprising about 180 steelmakers, said on Oct. 12 the emerging economies of China and India will rebound faster than developed nations.
India’s steel demand may gain as much as 10 percent this fiscal year, almost double the pace previously estimated, as the government spends more on infrastructure, Rastogi said in June.
“As the monsoon fades in India, demand will grow and we will be able to attain our 10 percent growth target,” he said today.
To contact the reporter on this story: Debarati Roy in Mumbai at droy5@bloomberg.net
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