Tata Steel said the steel consumption is likely to grow by about five per cent in FY 14 as a result of slowdown in demand from the real state and automobile sectors.
According to Tata Steel Managing Director H M Nerurkar -“They still hold the view that they should have the growth of around five per cent in current fiscal.”
He said the country “is still growing, but not growing at the rate you want”. Construction, which consumes 60 per cent of the steel in India, also needs to grow, he added.
In the first five months of the current fiscal, India's steel consumption grew by just 0.3 per cent to 30.34 million tonnes. India's steel consumption grew by just 3.3 per cent in FY 13, the lowest in last three years. The consumption moved up by 5.5 per cent in FY 12 and 9.9 per cent in FY 11.
Leading industry body World Steel Association (WSA) has pegged India's steel demand growth at 5.9 per cent to 75.8 million tonnes in 2013.
“Prices mostly depend on raw material. There were some ups and downs in raw material prices. As long as the price of raw material is stabilized, the price of steel will remain stabilized,” he said.
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