Steel consumption in the country has grown at a slower pace during the first four months of the fiscal 2014-15 at 0.60%, but 30% growth in exports helped consumption keep pace with the production. According to data from the Joint Plant Committee, a wing of the Ministry of Steel, domestic consumption during April-July 2014 stood at 25.72 million tonnes as compared to 25.57 million tonnes in the same quarter last year. Additionally, exports grew nearly 30% during first four months of the current fiscal, registering 30% growth, stood at 1.84 million tonnes as compared to 1.42 million tonnes.
Meanwhile, steel production during the period grew 0.9% to 27.39 million tonnes as compared to 27.15 million tonnes. More than half of this production came from Steel Authority of India (SAIL) and Tata Steel’s plants. The two companies had over 15 million tonnes of production during the four months.
Further, in a positive for the industry, Credit rating agencies expect the performance of steel companies to improve further in the coming months. It expects steel demand growth to start improving from the second half of fiscal 2014-15, supported by a pick-up in consumption following rising consumer sentiments and an expected improvement in economic growth.