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Steel demand of India expected to come back on higher growth track: Worldsteel

17 Oct 2018 Evaluate

Global industry body World Steel Association (worldsteel) has stated that steel demand of India is expected to come back on higher growth track as the country recovers from twin shocks of demonetisation and Goods and Services Tax (GST) implementation. It added that the demand will be supported by improving investment and infrastructure programmes, while stressed government finances and corporate debt weighs on the outlook.

In its October 2018 Short Range Outlook, worldsteel projects global steel demand at 1,657.9 million tonnes (MT) in 2018, an increase of 3.9% over 2017. The demand for steel in the developed world remains healthy, while in the developing countries steel demand will continue to recover amid challenges.

The body also said that construction activities in most developing economies will continue to grow, notably in India, Asean and the Middle East and North Africa (Mena). The automotive markets which showed strong growth in the developed economies are softening on the back of slowing demand growth, rising fuel prices and interest rates. In the developing countries, demand for automobiles will continue to grow at a healthy pace.

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