World Steel association cuts India's steel use growth to 4.3%

The World Steel Association has cut India's steel use growth
forecast to 4.3 per cent in 2011 from the earlier projected 13.3 per cent
growth. Steel consumption in India would now be 67.7 million tonnes as against
the earlier projection of 68.7 million tonnes.

The decline is largely attributed to the weakening economic
environment. For 2012, the growth forecast has been reduced to 7.9 per cent
from the earlier projections of 14.3 per cent.

In its short range outlook on Wednesday, the WSA has forecast
that global steel use will grow by 6.5 per cent to 1.398 billion tonnes in
2011. Earlier it had projected that global steel use would grow 5.9 per cent in
2011 to 1.359 billion tonnes.

“Today the global economy is facing increased uncertainty
over how the ongoing turmoil in the financial markets will evolve and how it
will affect the real economy. In light of this global economic uncertainty, our
forecast should be considered as cautiously optimistic,” said Mr Daniel
Novegil, Chairman of the World Steel Economics Committee.