- Finished
steel production for the month of November 2011 stands at 5.5mn tonnes. It is
up by 2.2% yoy and down 7.4% on mom basis. YTD production stands at 46.1mn
tonnes, up 7.9% compared to 42.7mn tonnes in YTD FY11. - Real
consumption of finished steel for November 2011 stands at 5.5mn tonnes up 11.7%
yoy and down 6.2% mom basis. Lower base in the corresponding month last year
led to yoy growth. YTD consumption stands at 45.1mn tonnes, up by 3.9% from
43.4mn tonnes YTD in FY11. - MG Securities suggest no significant pick-up in activity currently. They
expect some pick-up in demand from January 15, 2012 onwards. Currently, there
are nearly Rs3000 per tonne price difference between landed cost of imports and
domestic prices. Hence, domestic steel prices are not expected to fall from
here. - Lower
production during the month led to to higher imports and lower exports. Imports
for the month stands at 0.88mn tonnes, up 215.4% and 145.1% yoy and mom
respectively. YTD imports stands at 4.1mn tonnes, down by 19.6% compared to
5.1mn tonnes in YTD of FY11. - Finished
steel exports for the month stands at 0.18mn tonnes, down 43% and 52.5% yoy and
mom basis respectively. YTD exports stands at 2.7mn tonnes, up by 31.9% from
2.1mn tonnes YTD in FY11. - Source: MF Global Securities
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