Indian steel industry which has been dealing with subdued domestic demand since past one year, especially due to slack in construction sector has a reason to rejoice.
According to ISA (Indian Steel Association), which represents integrated steel producers in the country, steel demand in India for current fiscal year 2016-17 is expected to grow by 5.3% from 81.5 MnT in previous fiscal to 85.8 MnT.
Also for next fiscal year 2017-18, steel demand is expected to grow further by 5.6% at 90.6 MnT.
The key reasons cited for improvement in steel demand is positive demand outlook in construction as well as other steel-consuming sectors such as capital goods, automobiles and consumer durable.
The increase in disposable income of government employees on account of announcement of seventh pay commission coupled with good monsoons are likely to support the improvement in country’s domestic steel demand this year.
In first eight months of 2016 (Jan- Aug),India’s steel consumption stood at 55.32MnT up by 2.5% against 53.97 MnT consumption in corresponding period of previous year 2015.
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