Steel consumption in the April - September 2013 period rose by a mere 0.8 per cent from the same period a year ago, data by Joint Plant Committee, a unit of the Steel Ministry showed. Finished steel consumption in India, an indicator for the health of the economy, stood at 36.58 million tonnes in the first six months of the current fiscal.
In FY 2012-13, India's consumption of finished steel stood at 36.28 million tonnes. India is the world's fourth biggest steel maker. A slowdown in the auto and construction sectors is weighing heavily on steel demand in India.
The World Steel Association cut India's steel demand growth forecast to 3.4 per cent in the current year from 5.9 per cent estimated earlier. "In India, steel demand is expected to grow by 3.4 per cent to 74 million tonnes (MT) in 2013 following 2.6 per cent growth in 2012 as high inflation and structural problems are constraining steel using sectors' activities," the Steel Industry said.
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